Econ Unit 3 Review

Front

An increase in the price of milk causes a decrease in the demand for cereal. The two products are

Back

complements

Front

Because a modest price increase has little or no effect, the demand for the product is

Back

inelastic

Front

For most products and services, increased price results in

Back

demand for fewer products

Front

Advertising, fashion trends, and new product introductions serve to

Back

create consumer demand

Front

What does a demand schedule show?

Back

a listing of the various quantities demanded of a particular product at all prices that might prevail in the market

Front

When a customer's need for a product is not urgent, demand tends to be

Back

elastic

Front

The supply of a product normally decreases if:
- the cost of inputs goes down
- more producers enter the market
- the price of the product increases
- taxes on the product increase

Back

taxes on the product increase

Front

What is the measure of responsiveness that shows how a dependent variable responds to a change in an independent variable?

Back

elasticity

Front

What describes change in demand when a change in price causes a relatively larger change in demand?

Back

elastic

Front

Extra usefulness gained from using one more unit of a product.

Back

marginal utility