chapters 1-10 key terms

Question 1

what is price elasticity of demand

Answer 1

Price elasticity of demand measures the responsiveness of quantity demanded for a product to a change in price

Question 2

what are inferior goods

Answer 2

demand drops when income rises

Question 3

what are normal goods?

Answer 3

direct relationship between demand and income

Question 4

what is a monopoly

Answer 4

a business owns 100% of the market

Question 5

what is an oligopoly

Answer 5

many businesses but only a few dominate the market

Question 6

what is monopolistic competition

Answer 6

a large number of relatively small businesses in competition with each other

Question 7

what are types of segmentation

Answer 7

demographic
psychographic
geographic

Question 8

what are demographics

Answer 8

age
social class
gender
income

Question 9

what is a global market

Answer 9

selling goods or services to overseas markets

Question 10

what are trade markets

Answer 10

selling and supplying to distributors retailers wholesalers

Question 11

what are seasonal markets

Answer 11

ice cream

Question 12

what is law of demand

Answer 12

higher price lower quantity for demand and lower price higher demand

Question 13

what is the market equilibrium

Answer 13

demand and supply curve intersect

Question 14

what is income elasticity of demand

Answer 14

responsiveness of demand to changes in income

Question 15

random sampling

Answer 15

population have equal chance of being interviewed

Question 16

quota sampling

Answer 16

population put into groups based on characteristics

Question 17

what is ombudsman

Answer 17

take complaints from dissatisfied customers

Question 18

non excludable

Answer 18

individuals cant be prevented from enjoying benefits of public goods or services

Question 19

non rivalry

Answer 19

one person gaining from consumption of a good or service doesn’t prevent others from also gaining the good or service

Question 20

corporation

Answer 20

legal entity created by individuals,stockholders,chareholders with the objective of conducting a business

Question 21

merit goods

Answer 21

service given by public and private sctor

Question 22

public goods

Answer 22

funded and orovided by the governmnent