supply and demand

Question 1

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

Answer 1

demand

Question 2

___________ is one of the major factors that influences demand

Answer 2

price

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

Answer 6

market demand schedule

Question 7

A ________ is a graph that show much of a good or service an individual will buy at each price

Answer 7

demand curve

Question 8

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

Answer 8

market demand curve

Question 9

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

Answer 9

law of diminishing marginal utility

Question 10

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 10

income effect

Question 11

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

Answer 11

substitution effect

Question 12

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

Answer 12

quantity demanded

Question 13

most common movement on the demand curve is due to ________

Answer 13

price

Question 14

the six factors that can cause a change in demand:

Answer 14

income, market size, customer taste, consumer expectations, substitute goods, and complementary goods

Question 15

_________ are goods that consumers demand more of when their income rise

Answer 15

normal goods

Question 16

__________ are goods that consumers demand less of when their income rise

Answer 16

inferior goods

Question 17

___________ has a strong influence on customer taste

Answer 17

advertising

Question 18

__________ can be used in place of another good

Answer 18

substitutes

Question 19

__________ are goods that work in tandem with each other

Answer 19

complements

Question 20

economist use the term ___________ to describe how responsive consumers are to price changes in the market olace

Answer 20

elasticity of demand

Question 21

demand is _______ when a change in price leads to a relatively larger change in quantity demanded

Answer 21

elastic

Question 22

demand is ________ when a change in price leads to a relatively smaller change in quantity demanded

Answer 22

inelastic

Question 23

elastic goods are ________

Answer 23

price sensitive

Question 24

in the case of _________, price has little impact on quantity demanded

Answer 24

inelastic demand

Question 25

elastic=

Answer 25

over 1

Question 26

inelastic=

Answer 26

less than 1

Question 27

unit elastic=

Answer 27

1

Question 28

three things that determines elasticity

Answer 28

substitute for goods and services
proportion of income
necessities vs luxuries

Question 29

a ____________ is something that you desire but that is not essential to your life

Answer 29

luxury