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
- indicates movement along the same demand curve to a lower or higher price and quantity demanded.
- goods for which the rise or fall in price greatly affects the amount of the product that people are willing to buy/demand.
- the power that a good or service has to satisfy a want
4 True/False Questions
demand → a graph showing the quantity demanded at each and every price that might prevail in the market.
Complements → a decrease in the price of a good leads to an increase in the demand for its complementary good.
inelastic → if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt
Substitute effect → if the price of one similar item rises in relation to the price of another, people will substitutes the lower priced item.