6 Written Questions

1. describes demand whose elasticity is exactly equal to one
2. a good that consumers demand more of when their incomes increase
3. consumers buy more of a good when its price decreases and less when its price increases
4. a Latin phrase that means "all other things held constant"
5. describes demand that is not very sensitive to a change in price
6. a measure of how consumers react to a change in price

6 Multiple Choice Questions

1. a graph of the relationship between the price of a good and the quantity demanded
   1. Demand Curve
   2. Demand
   3. Elastic
   4. Demand Schedule
2. a table that lists the quantity of a good a person will buy each different price
   1. Market Demand Schedule
   2. Demand Curve
   3. Demand
   4. Demand Schedule
3. when consumers react to an increase in a good's price by consuming less of that good and more of other goods
   1. Elasticity of Demand
   2. Substitution Effect
   3. Income Effect
   4. Substitutes
4. the total amount of money a firm receives by selling goods or services
   1. Normal Good
   2. Demand Schedule
   3. Complements
   4. Total Revenue
5. the desire to own something and the ability to pay for it
   1. Demand
   2. Demand Curve
   3. Elastic
   4. Law of Demand
6. the change in consumption resulting from a change in real income
   1. Inelastic
   2. Normal Good
   3. Complements
   4. Income Effect

5 True/False Questions

1. Inferior Good → a good that consumers demand less of when their incomes increase

   True        False

2. Elastic → describes demand that is very sensitive to a change in price

   True        False

3. Substitutes → goods used in place of one another

   True        False

4. Complements → the change in consumption resulting from a change in real income

   True        False

5. Market Demand Schedule → a table that lists the quantity of a good all consumers in a market will buy at each different price

   True        False