Economics Midterm Exam Review C

The influence of the global economy is shown when a shortage of

• Florida oranges causes orange prices to rise in the US

• Florida oranges has no effect on orange prices in the US

• coffee in Kenya causes coffee prices to rise in the US

• coffee in Kenya has no effect on coffee prices in the US

What 2 factors are necessary for demand?

• desire for a good or service and its availability in the market

• desire for a good or service and the ability to pay for it

• the availability of a good or service and the ability to pay for it

• familiarity with a good or service and the desire to pay for it

How is total revenue calculated?

• Multiplying price by change in demand

• Multiplying price by quantity sold

• Multiplying change is price by change in quantity demanded

• multiplying change in price by quantity sold

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

• consumer expectation

• consumer taste

• decreasing marginal utility

• elasticity of demand

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

• consumer expecations

• consumer taste

• income

• substitutes

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

• elastic

• inelastic

• perfectly elastic

• unit elastic

According to the law of demand, what happens when prices go down?

• Demand increases

• Quantity Demanded increases

• Demand decreases

• Quantity Demanded decreases

Dylan's family buys next year's winter clothes in February to benefit from the end-of-season sales. What factor affects their demand for clothes?

• income

• market size

• consumer expectation

• consumer taste

What does an inelastic demand curve look like?

• steep slope

• shallow slope

• vertical line

• horizontal line

Which statement best explains why demand for gasoline is inelastic?

• gasoline prices are currently very high

• there is no widely available substitute fuel for cars

• gasoline uses a small portion of a person's income

• people have already cut back their driving to a minimum