Demand & Supply : 2/16/16

Question 1

The forces of s_____ and d______ establish the p____ that best serves both producers and consumers.

Answer 1

Supply, demand, price

Question 2

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

Answer 2

Demand

Question 3

P___ is one of the major factors that influences demand.

Answer 3

Price

Question 4

The l__ __ d_____ states that when the price of a good or service falls, consumers will buy more of it.

Answer 4

Law of demand

Question 5

As the p____ of a good or service increases, consumers usually buy ___ of it.

Answer 5

Price, less

Question 6

Q______ d_________ and p____ have an i______ r__________.

Answer 6

Quantity demanded, price, inverse relationship

Question 7

A d_______ s_______ 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 m______ d______ s________ 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 ____-hand column of the table lists various _____ of a good/service.

Answer 9

Left, prices

Question 10

The ____-hand column shows the ________ ________ of the good/service at each price.

Answer 10

Right, quantity demanded

Question 11

A d_____ c____ is a graph that shows how much of a good or service an individual will buy at each price.

Answer 11

Demand curve

Question 12

The d_____ c_____ should slope d________ from the u____ ___ to the l_____ ____.

Answer 12

Demand curve, downward, upper left, lower right

Question 13

A m______ d_______ c_____ shows the data found in the market demand schedule.

Answer 13

Market demand curve

Question 14

A m_____ d_____ c_____ 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 v_______ axis displays p_____ and the h__________ axis displays q________ d_______.

Answer 15

Vertical, prices, horizontal, quantities demanded

Question 16

The l____ of d_________ m________ u_____ states that the marginal benefit of using each additional unit of a product during a given period will decline. That u______ is the satisfaction gained from the use of a good or service.

Answer 16

Law of diminishing marginal utility, utility

Question 17

Economists have identified two patterns of behavior as causes : the i______ e_____ and the s_________ e____.

Answer 17

Income effect, substitution effect

Question 18

The i_____ e_____ 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 18

Income effect

Question 19

The s____________ e____ 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 19

Substitution effect

Question 20

A change in the amount of a product that consumers will buy because of a change in price is called a c_____ in the q______ d________.

Answer 20

Change in the quantity demanded

Question 21

Each change in q_______ d__________ is shown by a new p____ on the d_____ c____.

Answer 21

Quantity demanded, point, demand curve

Question 22

C_____ in demand is also called a s____ in demand because it actually shifts the position of the demand curve.

Answer 22

Change, shift

Question 23

Six factors can cause change in demand : i_____, m_____ s___, c_______ t______, c_______ e_________, s________ g____, and c____________ g_____.

Answer 23

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

Question 24

Changes in income also affect m_____ d______ c_____.

Answer 24

Market demand curves

Question 25

When the i______ of most consumers in a market rise or fall, the t_____ d______ in that market also usually rises or falls.

Answer 25

Incomes, total demand

Question 26

N_____ g_____ are goods that consumers demand more of when their incomes rise.

Answer 26

Normal goods

Question 27

I_______ g____ are goods that consumers demand less of when their incomes rise.

Answer 27

Inferior goods

Question 28

I______ g____ are used books and generic food products.

Answer 28

Inferior goods

Question 29

A_________ has a strong influence on consumer tastes.

Answer 29

Advertising

Question 30

Your expectations for the f_____ can affect your b_____ h____ today.

Answer 30

Future, buying habits

Question 31

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

Answer 31

Substitutes

Question 32

Economists use the term e________ of _______ to describe how responsive consumers are to price changes in the marketplace.

Answer 32

Elasticity of demand

Question 33

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

Answer 33

Elastic

Question 34

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

Answer 34

Inelastic

Question 35

Elastic goods and services are often said to be p____ s________.

Answer 35

Price sensitive

Question 36

In the case of i______ demand, changes in price have little impact on the q______ d________.

Answer 36

Inelastic, quantity demanded

Question 37

Goods that have a larger number of s_________ fall into the e______ category.

Answer 37

Substitutes, elastic

Question 38

_______ though, is ________ because the quantity demanded remains relatively constant.

Answer 38

Insulin, inelastic

Question 39

The ______ demand curve has a steeper slope than the _______ demand curve does.

Answer 39

Inelastic, elastic

Question 40

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

Answer 40

Unit elastic

Question 41

No good or service is ever really ___ ______.

Answer 41

Unit elastic

Question 42

Three things determine elasticity. : 1. S_______ g____ or s_____. 2. P_______ of i______. 3. N_______ vs l_______.

Answer 42

Substitute goods or services, proportion of income, necessities vs luxuries

Question 43

If there are no substitutes for a good or service, demand for it tends to be _______.

Answer 43

Inelastic

Question 44

The p________ of your i______ that you _____ on a good or service is another factor that affect _______.

Answer 44

Percentage, income, spend, elasticity

Question 45

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

Answer 45

Inelastic

Question 46

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

Answer 46

Necessity

Question 47

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

Answer 47

Inelastic

Question 48

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

Answer 48

Luxury

Question 49

Demand for luxuries tends to be ______.

Answer 49

Elastic