Demand

Question 1

The forces of ___ and ___ establish the price that best serves both producers and consumers

Answer 1

supply and demand

Question 2

___ is the desire to have a good or service and the ability to pay for it

Answer 2

Demand

Question 3

___ is one of the major factors that influences demand

Answer 3

Prices

Question 4

The law of ___ states that when the price of a good or service falls, consumers will buy more of it

Answer 4

demand

Question 5

As the price of a good or service ___, consumers usually buy less of it

Answer 5

increase

Question 6

___ and ___ have an inverse relationship

Answer 6

Quantity demanded and price

Question 7

A ___ is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each price in the market

Answer 7

Demand schedule

Question 8

A ___ shows how much of a good or service all consumers are willing and able to buy at each price in a market

Answer 8

market demand schedule

Question 9

The left-hand column of the table lists various ___ of a good/service

Answer 9

prices

Question 10

The right-hand column shows the ___ of the good/service at each price

Answer 10

quantity demanded

Question 11

A ___ is a graph that shows how much of a good or service and individual will buy at each price

Answer 11

demand curve

Question 12

The demand curve should slope ___ from the upper ___ to lower ___

Answer 12

downward
left
right

Question 13

The market demand curve shows the data found in the ___

Answer 13

market demand schedule

Question 14

A ___ shows the sum of the information on the individual demand curves of all consumers in a market

Answer 14

market demand curve

Question 15

The ___ axis displays prices and the ___ axis displays quantities demanded

Answer 15

vertical

horizontal

Question 16

The ___ states that the marginal benefit of using each additional unit of a product during given period will decline

Answer 16

law of diminishing marginal utility

Question 17

Recall that ___ is the satisfaction gained from the use of god or service

Answer 17

utility

Question 18

Economists have identified two patterns of behavior as causes: The ___ effect and the ___ effect

Answer 18

income and substitution

Question 19

The ___ effect is the term used for a change in the amount of a product that a consumer will buy because purchasing power of his/her income changes

Answer 19

income

Question 20

The ___ effect is the pattern of behavior that occurs when consumers react to change in the price or service by buying a substitution product

Answer 20

substitution

Question 21

A change in the amount of a product that consumers will buy because of a change in ___ is called a change in the quantity demanded

Answer 21

price

Question 22

Each change in ___ is shown by a new point on the demand curve

Answer 22

quantity demanded

Question 23

Change in the demand is also called a ___ in ___ because it actually shifts the position of the demand curve

Answer 23

shift in demand

Question 24

What are the fix factors that can cause a change in demand?

Answer 24

income
market size 
consumer tastes 
consumers expectations
substitute goods 
complementary goods

Question 25

Changes in ___ also affect market demand curves

Answer 25

income

Question 26

When the incomes of most consumer in a market rise or fall, the total ___ in that market also usually rises or falls

Answer 26

demand

Question 27

___ goods are goods that consumers demand more of when their incomes rise

Answer 27

Normal Goods

Question 28

___ goods are goods that consumers demand less of when their income rises

Answer 28

Inferior

Question 29

___ has a strong influence on consumer tastes

Answer 29

Advertising

Question 30

Your ___ for the future can affect your buying habits today

Answer 30

expectations

Question 31

Goods and services that can be used in place of other goods and services to satisfy consumers wants are called ___

Answer 31

substitute

Question 32

Demand for ___ will increase while demand for original item decreases

Answer 32

substitute

Question 33

When the use of one product increases the use of another product, the two products are called ___

Answer 33

complements

Question 34

___ are goods or services that work in tandem with each other

Answer 34

complements

Question 35

Economists use the term ___ to describe how responsive consumers are to price changes in the marketplace

Answer 35

elasticity of demand

Question 36

Demand is ___ when a change in price, either up or down, leads to a relatively larger change in the quantity demanded

Answer 36

elastic

Question 37

Demand is ___ when a change in price leads to relatively smaller change in the quantity demanded

Answer 37

inelastic

Question 38

Elastic goods and services are often said to be ___

Answer 38

price sensitive

Question 39

In the case of ___, changes in price gave little impact on the quantity demanded

Answer 39

inelastic demand

Question 40

Goods that have a larger number of substitutes fall into the ___ category

Answer 40

elastic

Question 41

Insulin though, is ___ because the quantity demanded remains relatively constant

Answer 41

inelastic

Question 42

Demand is said to be ___ when the percentage change in price and quantity demanded are the same

Answer 42

unit elastic

Question 43

The number for something being elastic is ___ than one

Answer 43

greater

Question 44

The ___ is represented by the number 1

Answer 44

unit elastic

Question 45

The number for something inelastic us ___ than one

Answer 45

less

Question 46

No good or service is ever really ___

Answer 46

unit elastic

Question 47

What are the three things that determines elasticity?

Answer 47

Substitute goods or services
Proportion of income
Necessities vs Luxuries

Question 48

If there are no substitutes for goods or services, demand for it tends to be ___

Answer 48

inelastic

Question 49

The percentage of your income that you spend on a good or service is another factor that affects ___

Answer 49

elasticity

Question 50

At the same time, demand for products that cost little of your income tends to be ___

Answer 50

inelastic