Supply & Demand Review (Ch 4 & 5)

Consumers affect demand by changing their minds about what they _________________.

• Earn

• like and want

• Produce

• supply others

Economists use the word _____________ to measure the impact of price on demand.

• Elasticity

• Profit

• Utility

Juice, water, milk, and tea are ______________ for soft drinks.

• Factors

• Utilities

• Income

• Substitutes

____________ is the usefulness or satisfaction a consumer gets from a product.

• Elasticity

• Utility

• Demand

• Bottom line

How much a product or service costs is its ____________.

• Price

• Income

• Demand

• Consumer taste

A good consumed instead of one whose price has risen

• Substitute

• Complement

• Demand Curve

• Inferior good

The assumption that nothing but the price of a good will change

• Sustitute

• Complement

• Inferior good

• Ceteris paribus

A good that is bought and used along with another good

• Complement

• Demand curve

• Inferior good

• Elasticity of demand

Alex receives a raise at work and continues to work the same number of hours each week. His demand for $3 t-shirts, which he considers an inferior good will

• Have no relation to his income

• increase

• stay the same

• decrease

How did the existence of the baby boom generation change demand in the united states?

• People were poorer because they had so many children, so demand was lowered

• After they reached the teenage years, the baby boomers were integrated into the society and no longer affected the demand

• The baby boomers did not raise demand until they became adults, when they had their own money to spend

• Demand was raised for different goods with each age the boomers reached