Economics Ch. 3: Demand Review

Question 1

Utility

Answer 1

when consumers consume products, those products give them utility or usefulness. The more and more we consume of these products, our satisfaction diminishes with each unit of consumption

Question 2

Demand

Answer 2

amount of goods or services that consumers are willing to buy at each and every price during a specific time period like a photo snap shot or picture

Question 3

Quantity of Demand

Answer 3

amount of goods or services that consumers are willing to buy at a specific price during a specific period of time

Question 4

Law of Demand

Answer 4

buy more goods or services at lower price and less at higher price

Question 5

Relationship between Price and Quantity Demanded

Answer 5

Inverse

Question 6

5 Determinants of Demand

Answer 6

Consumer tastes and preferences
Market size
Income
Price of related goods
Consumer expectations

Question 7

Inelastic

Answer 7

at given price, good is a necessity, could be a small part of consumer income, few substitutes

Question 8

Elastic

Answer 8

good is not a necessity at given price, could be a large part of consumer income, many substitutes