5 Written Questions
4 Multiple Choice Questions
- a decrease in the price of a good leads to an increase in the demand for its complementary good.
- indicates movement along the same demand curve to a lower or higher price and quantity demanded.
- the power that a good or service has to satisfy a want
- if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt
4 True/False Questions
Change in demand → indicates a shift in the entire demand curve to the right or left. (Right-increase.. left-decrease)
demand curve → 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
marginal utility → amount of additional satisfaction
Substitute effect → if the price of one similar item rises in relation to the price of another, people will substitutes the lower priced item.