Demand
Practice the important concepts from the lesson.
The extent to which a change in price causes a change in the quantity demanded is called __________.
a. the substitution effect
b. marginal utility
c. the market supply schedule
d. demand elasticity
answer: demand elasticity
If demand for an item decreases with a small increase in its price, demand for that item is __________.
a. inelastic
b. unit elastic
c. perfectly inelastic
d. elastic
answer: elastic
If a product has many substitutes, demand for that product tends to be __________.
a. inelastic
b. elastic
c. unit elastic
d. perfectly inelastic
answer: elastic
Demand is __________ when a change in price causes a proportional change in demand.
a. elastic
b. inelastic
c. unit elastic
d. perfectly inelastic
answer: unit elastic
According to the total expenditures test, price x __________ = total expenditures.
a. quantity
b. elasticity
c. demand
d. sales
answer: quantity
When the price of oranges increases, __________.
a. the demand for oranges increases
b. the demand for oranges decreases
c. the quantity of oranges demanded increases
d. the demand for oranges will not change
answer: the demand for oranges decreases
If we make more money, we will purchase more __________ goods.
a. normal goods
b. inferior goods
c. elastic goods
d. inelastic goods
answer: normal goods
When our income decreases, we purchase more __________ goods because they are less costly.
a. inelastic goods
b. elastic goods
c. normal goods
d. inferior goods
answer: inferior goods
What is the BEST example of an inferior good?
a. used good
b. new good
c. elastic good
d. inelastic good
answer: used good
What is the BEST example of an normal good?
a. Dr.Check cola
b. Goodwill items
c. movie tickets
d. bus ticket
answer: movie tickets