5 Written questions
4 Multiple choice questions
- desire to own a product.
- indicates movement along the same demand curve to a lower or higher price and quantity demanded.
- indicates a shift in the entire demand curve to the right or left. (Right-increase.. left-decrease)
- if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt
4 True/False questions
Substitutes → Substitutes (goods)as price of substitute decreases, demand for the original item also decreases.
law of demand → as the price of a good or service falls, a larger quantity will be bought; as the price of the good or service rises a smaller quantity will be bought.
Complements → a decrease in the price of a good leads to an increase in the demand for its complementary good.
Substitute effect → if the price of one similar item rises in relation to the price of another, people will substitutes the lower priced item.