CHApTER2

Question 1

Quantity demanded

Answer 1

Amount you actually plan to buy at a given price

Question 2

Law of demand

Answer 2

If the price of product or service rises, quantity demanded decreases,

Question 3

Demand curve

Answer 3

Relationship between price and quantity demanded

Slope downwards

Over and down

Question 4

Marginal benefit curve

Answer 4

Up and over

Question 5

If the price changes it affects

Answer 5

Quantity demanded

Question 6

If any thing else besides price changes it affects

Answer 6

Demand

Shift of entire demand curve

Question 7

Inferior goods

Answer 7

Products you buy less when income increases

Question 8

Normal goods

Answer 8

Products you buy more when income increases

Question 9

Increase in quantity demanded

Answer 9

Down along unchanged demand curve

Question 10

Decrease in quantity demanded

Answer 10

Up along unchanged demand curve

Question 11

Demand for a product increases

Answer 11

Preferences increase

Price of substitute rises

Price of a complement falls

Income increases normal good

Income decreased inferior good

Expected future price rises

Number of consumers increased

Question 12

Demand for a product decreases

Answer 12

Preferences decrease

Price of a substitute falls

Price of a complement rises

Income decreased normal good

Income increased inferior good

Expected future price falls

Number of consumers decreases