Econ Unit 3 Review

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

• substitutes

• unrelated

• demand elastic

• complements

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

• elastic

• inelastic

• unit elastic

• complementary

For most products and services, increased price results in

• demand for fewer products

• demand for more products

• reduced demand for substitutes

• increased demand for complements

Advertising, fashion trends, and new product introductions serve to

• create consumer needs

• create consumer demand

• increase income effectiveness

• minimize the income effect

What does a demand schedule show?

• an upward sloping curve that illustrates the positive relationship between price and quantity demanded

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

• the fluctuations in demand that occurred over a specified period of time

• the fluctuations in demand scheduled to occur over the following year

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

• inelastic

• complementary

• elastic

• unit elastic

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

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

• demand

• elasticity

• marginal utility

• microeconomics

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

• elastic

• inelastic

• unit elastic

• marginal utility

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

• demand

• elasticity

• unit elastic

• marginal utility