Demand Test

Front

Which term refers to the amount of money consumers have available to spend on products? Options: Marginal power, Purchasing power, Income effect, Substitution effect

Back

Purchasing power

Front

As more units of a product are consumed, the satisfaction from consuming each additional unit...

Back

decreases

Front

A demand curve only displays a “snapshot” of a market because...

Back

it represents a specific time period.

Front

Which direction will the demand curve shift if consumers’ incomes rise?

Back

to the right

Front

If substitutes are not readily available for a product, it has

Back

inelastic demand.

Front

If a price increase causes a fall in total revenue, demand is...

Back

elastic.

Front

Any increase or decrease in consumers’ purchasing power caused by a change in price

Back

income effect

Front

A product that is commonly used with other products

Back

complementary good

Front

A product that can be used to replace the purchase of similar products when prices rise

Back

substitute good

Front

The amount of a good or service that a consumer is willing and able to buy at each particular price

Back

quantity demanded