5 Written Questions
4 Multiple Choice Questions
- a listing that shows the various quantities demanded of a particular product at all prices that might prevail in the market at a given time
- if the price of one similar item rises in relation to the price of another, people will substitutes the lower priced item.
- 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.
- indicates a shift in the entire demand curve to the right or left. (Right-increase.. left-decrease)
4 True/False Questions
inelastic → if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt
Elastic → goods for which the rise or fall in price greatly affects the amount of the product that people are willing to buy/demand.
marginal utility → amount of additional satisfaction
demand curve → a graph showing the quantity demanded at each and every price that might prevail in the market.