5 Written questions
4 Multiple choice questions
- amount of additional satisfaction
- indicates a shift in the entire demand curve to the right or left. (Right-increase.. left-decrease)
- 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.
4 True/False questions
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.
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.
demand → goods for which the rise or fall in price greatly affects the amount of the product that people are willing to buy/demand.