Economics – Chapter 4 Exam

Front

An actress sets off a craze for wearing camouflage clothing among her fans. What factor is affecting demand?

Back

consumer taste

Front

How is total revenue calculated? Options: multiplying price by change in demand, multiplying price by quantity sold, multiplying change in price by change in quantity demanded, multiplying change in price by quantity sold

Back

multiplying price by quantity sold

Front

What do business owners use to gather information for market demand schedules?

Back

market research

Front

Which of the following describes a demand curve? It is a horizontal line. It slopes downward from left to right. It slopes downward from right to left. It is bow-shaped.

Back

It slopes downward from left to right.

Front

Which economic concept is defined as the measure of how responsive consumers are to price change?

Back

elasticity of demand

Front

What term is defined as the change in the amount consumers will buy because they can buy a different product instead?

Back

substitution effect

Front

What term is defined as goods that consumers demand more of when their incomes rise?

Back

normal goods

Front

A factory closes, laying off hundreds of workers, and consumer spending in the town falls. What factor is affecting demand?

Back

income

Front

If quantity demanded does not change significantly when price changes, how is demand described?

Back

inelastic

Front

What factor is affecting demand for restaurants in a town in the Rockies in January when skiers flock there?

Back

market size