Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Demand and Supply > Demand > Flashcards

Demand Flashcards

1
Q

The________________establish the price that best serves both producers and consumers

A

forces of supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

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

A

Demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

__________ is one of the major factors that influences demand

A

Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The____________states that when the price of a good or service falls, consumers will buy more of it.

A

law of demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Quantity demanded and price have an________

A

Inverse Relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

___________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

A

A demand schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

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

A

A market Demand Schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The left-hand column of the table lists various_________

A

prices of good/services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

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

A

quantity demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A____________is a graph that shows how much of a good or service an individual will buy at each price

A

Demand Curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The demand curve should slope__________from the upper left to lower right

A

downward

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A market demand curve shows the_______________________.

A

Data found in the market demand schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A market demand curve shows the________________on the individual demand curves of all consumers in a market

A

sum of the information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The vertical axis displays_____________ and the horizontal axis displays___________.

A

Prices and quantities demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

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

A

The law of diminishing marginal utility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

_______________is the satisfaction gained from the use of a good or service

A

Recall that utility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Economists have identified two patterns of behavior as causes;__________________.

A

The income effect and the substitution effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

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

A

Income effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

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

A

Substitution effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

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

A

A change in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Each change in quantity demanded is shown by______________.

A

A new point on the demand curve.

22
Q

Change in demand is also called ________________because it actually shifts the position of the demand curve

A

A shift in Demand

23
Q

Six factors can cause a change in demand:

A

Income, market size, consumer tastes, consumer expectations, substitute goods, and complementary goods

24
Q

Changes in income also affect_______________.

A

Market Demand Curves

25
Q

When the incomes of most consumers in a market rise or fall, the total demand in that market also usually_____________.

A

Rises or falls

26
Q

________________are goods that consumers demand more of when their incomes rise

A

Normal goods

27
Q

____________are goods that consumers demand less of when their incomes rise

A

Inferior goods

28
Q

Advertising has a strong influence on_______________.

A

Consumer tastes

29
Q

Your expectations for the future can affect your________________.

A

buying habits today

30
Q

Goods and services that can be used in place of other goods and services to satisfy consumer wants are called __________.

A

Substitutes

31
Q

Demand for the substitute will_______ while demand for the original item_________.

A

Increase, Decreases

32
Q

When the use of one product increases the use of another product, the two products are called_________.

A

Complements

33
Q

_____________are goods or services that work in tandem with each other.

A

Complements

34
Q

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

A

Elasticity of Demand

35
Q

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

A

Elastic

36
Q

Demand is__________when a change in price leads to a relatively smaller change in the quantity demanded

A

Inelastic

37
Q

Elastic goods and services are often said to be_____________.

A

Price sensitive

38
Q

In the case of inelastic demand, changes in price have little impact on the____________________.

A

Quantity demand

39
Q

greater than 1-
Less than 1-
Exactly 1-

A

Elastic, Inelastic, Unit

40
Q

Goods that have a larger number of substitutes fall into__________.

A

Elastic Category

41
Q

The inelastic demand curve has a______________than the elastic demand curve does

A

Steeper Slope

42
Q

No good or service is ever really______________.

A

Unit Elastic

43
Q

Three things determines elasticity:

A
  • Substitute goods or services
  • Proportion of income
  • Necessities vs Luxuries
44
Q

If there are no substitutes for a good or services, demand for it tends to be___________.

A

Inelastic

45
Q

The percentage of your__________________________is another factor that affects elasticity

A

Income that you spend on a good or service

46
Q

Demand for products that cost little of your income tends to be_________.

A

Inelastic

47
Q

A___________is something you must have, such as food or water

A

Necessity

48
Q

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

A

Luxury

49
Q

The change in quantity demanded is smaller than the change in price, so demand is__________.

A

Inelastic

50
Q

Demand for luxuries tends to be_________.

A

Elastic

Demand and Supply (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions