Economics Pt 3 Quiz

What is demand?

• The desire to own something and the ability to afford it.
• A graph that shows the quantity demanded at every price.
• The usefulness of a product expressed in a dollar sign.

Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.

This occurs when you feel like you have less money when the price of a good rises.

• Income Effect
• Substitution Effect
• Demand Effect
• Inflation Effect

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule
• market demand schedule
• elasticity chart
• supply and demand graph

Consumers demand more of this type of good when their income rises.

• Normal good
• Inferior good
• Elastic good
• Substitution good

Consumers demand less of this type of good when their income rises.

• Normal good
• Inferior good
• Elastic good
• Related good

The demand for a good is _____ when a small change in price causes a large change in the quantity demanded.

• elastic
• inelastic
• related
• substituted

Demand for a product is said to be _______ when a change in price causes very little change in quantity demanded.

• elastic 
• inelastic
• related
• rigid

Goods that are bought and used together are 

• complementary goods
• substitute goods
• income goods
• unrelated goods

Insulin for a diabetic has a/an _______ demand.

• elastic
• inelastic