Demand

Question 1

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

Answer 1

Demand

Question 2

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

Answer 2

market demand schedule

Question 3

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

Answer 3

law of demand

Question 4

Quantity demanded and price have an _____ relationship

Answer 4

inverse

Question 5

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 5

demand schedule

Question 6

A ______ shows the data found in the market demand schedule

Answer 6

market demand curve

Question 7

_____is one of the major factors that influences demand

Answer 7

Price

Question 8

The _______ shows the quantity demanded of the good/service at each price

Answer 8

right-hand column

Question 9

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

Answer 9

demand curve

Question 10

Demand is elastic when ______________

Answer 10

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

Question 11

The ______ of the table lists various prices of a good/service

Answer 11

left-hand column

Question 12

The vertical axis displays ______

Answer 12

prices

Question 13

The ______ displays quantities demanded

Answer 13

horizontal axis

Question 14

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

Answer 14

law of diminishing marginal utility

Question 15

______ is the satisfaction gained from the use of a good or service

Answer 15

utility

Question 16

The _______ 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 16

income effect

Question 17

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

Answer 17

market demand curve

Question 18

A change in the amount of a product that consumers will buy because of a change in price is called a change in the _________

Answer 18

quantity demanded

Question 19

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

Answer 19

Normal goods

Question 20

The ________ is the pattern of behavior that occurs when consumers react to change in the price of a good or service by buying a substitute product

Answer 20

substitution effect

Question 21

______ has a strong influence on consumer tastes

Answer 21

Advertising

Question 22

Your expectations for the future can affect your ________

Answer 22

buying habits today

Question 23

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

Answer 23

elasticity of demand

Question 24

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

Answer 24

inelastic

Question 25

Elastic goods and services are often said to be ________

Answer 25

price sensitive

Question 26

Three things determines elasticity:

Answer 26

1. Substitute goods or services
2. Proportion of income
3. Necessities vs Luxuries

Question 27

A _______ is something you must have, such as food or water

Answer 27

necessity

Question 28

A ______ is something that you desire but that is not essential to your life, such as a plasma television

Answer 28

luxury

Question 29

Demand for luxuries tends to be _____

Answer 29

elastic

Question 30

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

Answer 30

Interior goods