Review Supply and Demand

Front

Which term refers to the principle that quantity demanded and price move in opposite directions?

Back

law of demand

Front

A table that lists the various quantities of a product or service that someone is willing to buy over a range of possible prices is known as a

Back

demand schedule

Front

The fact that the first piece of pizza you eat gives you more satisfaction than the second or third piece is an example of the

Back

diminishing marginal utility

Front

A graph that shows how many units of a product or service an individual will buy at a particular price is referred to as a

Back

demand curve

Front

An increase in demand for computer software because of a drop in computer prices is an example of what factor affecting demand?

Back

changes in complements

Front

A new product that becomes the "must buy" of the year during the holiday season is an example of what factor affecting demand?

Back

changes in consumers' tastes

Front

Which factor of changes in demand is illustrated by a new apartment building being built in an area? Options: changes in the number of consumers, changes in complements, changes in consumers' expectations, changes in consumers' income

Back

changes in the number of consumers

Front

Which of the following is NOT an example of an item that would have elastic demand? Options: an item that has few substitutes, an expensive item, an item that can be purchased late, an item that has attractive substitutes

Back

an item that has few substitutes

Front

Buying butter when the prices of margarine rise is an example of which factor affecting demand?

Back

changes in substitutes

Front

In the U.S. economy, what functions as a signal to help businesses and consumers make decisions?

Back

price