Chapter 3 of E.I.O.T. - Part 1

7 Written Questions

1. A good for which the demand increases as incomes rise and vice versa.
2. An intangible item that gives a person utility
3. The willingness and ability of buyers to purchase a good or service
4. States that as a person consumes additional units of a good, the utility gained from each additional unit decreases
5. Goods that are consumed together and the price of one moves in the opposite direction as the demand for the other
6. A tangible item that gives a person utility
7. The percentage change in quantity demanded is the same as the percentage change in price.

6 Multiple Choice Questions

1. The number of units of a good purchased at a specific price
   1. elastic demand
   2. quantity demanded
   3. law of demand
   4. inelastic demand
2. States that as the price of good increases the quantity demanded decreases, and vice versa
   1. elastic demand
   2. inelastic demand
   3. law of demand
   4. demand
3. Any place where people buy and sell goods and services
   1. demand
   2. market
   3. service
   4. good
4. The percentage change in quantity demanded is less than the percentage change in price.
   1. unit-elastic demand
   2. inelastic demand
   3. law of demand
   4. elastic demand
5. The percentage change in quantity demanded is greater than the percentage change in price
   1. inelastic demand
   2. unit-elastic demand
   3. elastic demand
   4. law of demand
6. The graphical representation of the law of demand that shows the amount of a good buyers a willing to buy a various prices
   1. demand
   2. demand schedule
   3. market
   4. demand curve

6 True/False Questions

1. inverse relationship → A relationship between two factors in which the factors move in opposite directions

   True        False

2. inferior good → A good for which the demand increases as income falls and vice versa

   True        False

3. substitutes → An intangible item that gives a person utility

   True        False

4. elasticity of demand → The relationship between the percentage change in quantity demanded and the percentage change in price

   True        False

5. demand schedule → The graphical representation of the law of demand that shows the amount of a good buyers a willing to buy a various prices

   True        False

6. neutral good → A good for which the demand remains unchanged as incomes change

   True        False