Ch. 4- Demand

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

The desire to have some good or service and the ability to pay for it

• supply

• equilibrium

• demand

• quantity demanded

Elasticity refers to

• how producers of goods and services react to price changes

• how consumers of goods and services react to price changes

• how far a supply of scarce goods can be stretched

• how often the price of a good or service changes when quantity demanded changes

A __________ is a listing of how much of an item an individual is willing to purchase at each price.

• Market Demand Curve

• Demand Curve

• Demand Schedule

• Market Demand Schedule

A __________ is a listing of how much of an item ALL consumers are willing to purchase at each price point.

• Demand Schedule

• Market Demand Schedule

• Demand Curve

• Supply/Demand Curve

A __________ graphically shows the data from a demand schedule. In other words, its a graph that shows how much of a good or service an individual will buy at each price.

• Demand schedule

• Demand curve

• Market demand curve

• Supply curve

A ________ shows the data found in the market demand schedule. It shows the quantity that all consumers, or the market as a whole, are willing and able to buy at each price.

• demand schedule

• market demand schedule

• demand curve

• market demand curve

___________ states that the marginal benefit of using each additional unit of a product during a given period will decline.

• substitution effect

• income effect

• complements

• law of diminishing marginal utility

The ______________ is the change in the amount that consumers will buy because the purchasing power of their income changes.

• Income effect

• substitution effect

• complement

• substitute

The ________ is a change in the amount that consumers will buy because they buy substitute goods instead.

• demand effect

• substitution effect

• complement effect

• income effect