Econ Unit 2 Test Review CP Coach Perrin

Front

Which of the following best describes the law of demand? Options: when a good’s price is lower consumers will buy more of it, when the price is higher consumers will buy less of it, when a good’s price is lower consumers will buy less of it, when the price is higher consumers will buy more of it, when a good’s price is lower consumers will buy the same amount of it, when the price is higher consumers will buy the same amount of it, when a good’s price is lower or higher consumers will look for a different good

Back

when a good’s price is lower consumers will buy more of it, when the price is higher consumers will buy less of it

Front

What does a demand schedule list?

Back

the quantity of a good that person will purchase at various prices in a market

Front

The main difference between a demand schedule and a market demand schedule is…

Back

Demand schedule is for a small group of consumers in the market while a market demand schedule is for all consumers in the market

Front

What is the focus of a demand curve?

Back

on the change in price

Front

All of the following are a non-price determinant that can shift demand EXCEPT… Income, Consumer expectations, Demographics, Graphs

Back

Graphs

Front

What is the difference between a complement good and a Substitute good?

Back

Complement goods are bought based on the consumption of a good that is paired with it, while substitute goods are often goods in competition with another and is bought as prices of the competing good rise.

Front

What is Elasticity?

Back

The way that consumers respond to a change in price

Front

Which of the following is the main difference between elastic and inelastic demand? Inelastic- unresponsive to price change; a price rises or falls and you still purchase about the same quantity Elastic- responsive to price change; a price rises or falls and you buy much less or much more of the product

Back

Inelastic- unresponsive to price change; a price rises or falls and you still purchase about the same quantity; Elastic- responsive to price change; a price rises or falls and you buy much less or much more of the product.

Front

How many steps are needed to find Elasticity of Demand?

Back

3

Front

What is the elasticity of demand if the final coefficient is >1?

Back

Elastic