Unit 4

Question 1

Market research

Answer 1

Gathering and evaluating info about customer preferences

Question 2

Demand schedule

Answer 2

A listing that shows the quantity demanded at all prices in the market

Question 3

Demand cure

Answer 3

Tells the quantity that consumers will demand at each and every price

Question 4

Quantity demand

Answer 4

The amount of a product purchased at a given price

Question 5

Change in quantity demand

Answer 5

A change in the amount of a product you buy because the price of the product changed (MOVERS)

Question 6

Change in demand

Answer 6

Happens when you change the amount of a good that you buy even tho the price stays the same (SHIFTERS)

Question 7

Factors for change in demand

Answer 7

Income 
Consumer taste
Substitutes
Complements 
Consumer expectations 
Market sales

Question 8

Income

Answer 8

People’s ability to buy certain goods is affected by their income

Question 9

Consumer taste

Answer 9

Popularity of an item affects demand

Question 10

Substitutes

Answer 10

Goods that can be used in place of another

Question 11

Complements

Answer 11

Goods that are used together so that a rise in demand in one good will increase that demand for another
Ex cereal and milk

Question 12

Consumer expectations

Answer 12

If you expect a product to go on sale you want to buy that product

Question 13

Market sale

Answer 13

The size of the market is based on the number of consumers

Question 14

Demand elasticity

Answer 14

How responsive consumers are to change in price

Question 15

Elastic demand

Answer 15

When demand is elastic prices will not change much but quantity demand will change greatly

Question 16

Inelastic demand

Answer 16

Inelastic demand states that quantity demand will change little as price changes

Question 17

3 questions that determine demand elasticity

Answer 17

Necessity or luxury?
Availability of subs?
Importance a to consumers budget?

Question 18

Demand

Answer 18

The desire ability and willingness to buy a product

Question 19

Supply

Answer 19

The desire and ability to produce and sell a product

Question 20

The law of supply

Answer 20

Quantity supplied varies directly with its price

Question 21

Change in quantity supplied

Answer 21

An increase or decrease in the amount of supplied due to a change in price (MOVERS)

Question 22

Change in supply

Answer 22

When selling price remains the same but supply changes due to something other than price (SHIFTER)

Question 23

6 factors that change supply

Answer 23

Input cost
Technology 
Govt action 
Numbers of producers
Producer expectations 
Labor productivity

Question 24

Input cost

Answer 24

Price of resources needed to produce a good

Question 25

Technology

Answer 25

New machinery and innovations to production

Question 26

Govt action

Answer 26

Govt policies can either help or hurt costs of production

Question 27

Numbers of producers

Answer 27

With more producers more Goods or services are produced vice versa

Question 28

Producer expectations

Answer 28

If producers expect the price of their product to ride or fall in the future that may affect their rate of productivity

Question 29

Labor productivity

Answer 29

The amount of goods and services that a person can produce at a given time increases productivity vice versa

Question 30

Elasticity supply

Answer 30

How responsive producers are to price changes

Question 31

Elastic supply

Answer 31

Quantity supplied will change greatly as a price changes

Question 32

Inelastic supply

Answer 32

Quantity supplied will change little as price changes

Question 33

Factor of supply elasticity

Elastic

Answer 33

If production isn’t complicated and resources are readily available

Question 34

Inelastic factors of supply Elasticity

Answer 34

If production is complicated and resources are expensive