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Economics; Chapter 4 Test
Be able to graph a demand curve and answer questions based on the graph
Terms in this set (26)
What must exist for there to be a demand to buy a product?
What does the law of demand state?
Quantity demanded of a good or a service varies inversely with price.
How are expenditures totaled?
Price times Quantity
When is demand elastic? Inelastic?
Demand elastic ~ Large change
Demand inelastic ~ Small change
What are some determinants of demand elasticity?
Can a purchase be delayed?
Are adequate substitutions available?
What direction is the slope of a demand curve?
What are complementary goods? What is an example?
Products that tend to be used together; Peanut butter and jelly.
What is diminishing marginal utility?
Satisfaction we gain from buying a product lessens as we purchase the item more.
What is marginal utility?
Extra usefulness or satisfaction a person receives from using or getting more unit of product.
What could cause a change in quantity demanded of a product?
Amount of product purchased when there is a change in price.
The relationship between price and quantity demanded of a product is....
The demand for an economic product varies inversely with its price.
Law of Demand
A measure of responsiveness that shows how quantity demanded responds to price.
A change in quantity demanded due to a change in the price of other products.
The desire, ability, and willingness to buy a product.
Products that can be used in place of other products.
Area of economics that deals with small units.
A change in price causes a smaller change in the quantity demanded.
A change in price causes a large change in quantity demanded.
Products that tend to be used together.
The decrease in satisfaction received form each additional unit of product.
The extra usefulness or satisfaction one gets from using one or more unit of product.
A change in quantity demanded due to a change in consumer's real income.
Graph showing the quantity demanded at each and every price at a given time.
The extent to which a change in price causes as a change in quantity demanded.
The study of the economy as a whole or large aggregates.
Sets with similar terms
Unit 2 - Demand
Economy - Chapter 4
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