5 Written questions
4 Multiple choice questions
- Substitutes (goods)as price of substitute decreases, demand for the original item also decreases.
- desire to own a product.
- indicates movement along the same demand curve to a lower or higher price and quantity demanded.
- if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt
4 True/False questions
law of demand → indicates a shift in the entire demand curve to the right or left. (Right-increase.. left-decrease)
Substitute effect → if the price of one similar item rises in relation to the price of another, people will substitutes the lower priced item.
demand schedule → a graph showing the quantity demanded at each and every price that might prevail in the market.
Elastic → if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt