Unit 2 - Microeconomics

Front

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

Back

complements

Front

Advertising, fashion trends, and new product introductions serve to

Back

create consumer demand

Front

The movement shown in this graph represents a change in what? Options: quantity demanded, marginal utility, demand, demand elasticity

Back

demand

Front

Based on this graph, how many Beanie Babies™ were demanded at a price of $6 before they became a fad?

Back

200

Front

The movement in the graph shows that the quantity demanded of butter decreased because the

Back

the price of margarine decreased

Front

A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?

Back

A dramatic decline in revenues demonstrated the elasticity of the product.

Front

Consumers' willingness to replace a costly item with a less costly item is an example of

Back

the substitution effect

Front

An increase in the price of cameras results in a decrease in the demand for film. The two products are

Back

complementary

Front

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

Back

elastic

Front

According to this demand curve, how many movie videos will be demanded at a price of $10?

Back

1000