5 Written questions
4 Multiple choice questions
- indicates a shift in the entire demand curve to the right or left. (Right-increase.. left-decrease)
- if the price of one similar item rises in relation to the price of another, people will substitutes the lower priced item.
- a graph showing the quantity demanded at each and every price that might prevail in the market.
- amount of additional satisfaction
4 True/False questions
Elastic → goods for which the rise or fall in price greatly affects the amount of the product that people are willing to buy/demand.
inelastic → if a price change DOES NOT result in a substantial change in quantity demanded. EX: sugar, milk, salt
Complements → a decrease in the price of a good leads to an increase in the demand for its complementary good.
Substitutes → Substitutes (goods)as price of substitute decreases, demand for the original item also decreases.