Chapter 4a (pp 49-58)

Question 1

The demand for ___ goods is directly related to consumers’ incomes.

Answer 1

normal

Question 2

What is the relationship between a good’s price and the amount that people are willing to buy?

Answer 2

demand

Question 3

As the price of a good falls, the quantity demanded ___.

Answer 3

increases

Question 4

If the price of gasoline rose, consumers would ___ the amount they bought

Answer 4

decrease

Question 5

An effective advertsing campaign influences a change in ___.

Answer 5

demand

Question 6

What are four marketing schemes that create discontentment in the customers to convince them to buy?

Answer 6

BOGO, limited sales, money-back guarantees, or enticing displays

Question 7

A demand curve slopes ___ and to the right.

Answer 7

downward

Question 8

What is the relationship between a good’s price and the amount that producers are willing to provide for consumers?

Answer 8

supply

Question 9

What effect says that when the price of good’s rises, it affects a consumer as if his income were reduced?

Answer 9

income

Question 10

What is a. list of numbers that compare quantity demanded with price?

Answer 10

demand schedule

Question 11

What principle states that as one’s supply of a specific good or service increases, the satisfaction derived from each additional unit tends to decrease?

Answer 11

diminishing marginal utility