2.1 Review quiz

what term best defines the desire of consumers to buy something and the ability to pay for it

• Demand

• Supply

• Means of production

• Income effect

What term best defines: states that “as the price of a good increases, the quantity demanded decreases and vice versa”

• Demand

• Income effect

• Law of demand

• Substitute effect

Define substitute effect

• None

• two goods that are bought and used together (ex: toothpaste and toothbrush)

• the desire of consumers to buy something and the ability to pay for it

• occurs when consumers react to a price increase by demanding less of that good and more of its substitutes

Define income effect

• occurs when consumers react to a price increase by demanding less overall goods

• two goods that are bought and used together (ex: toothpaste and toothbrush)

• occurs when consumers react to a price increase by demanding less of that good and more of its substitutes

Define complementary goods

• occurs when consumers react to a price increase by demanding less overall goods

• two goods that are bought and used together (ex: toothpaste and toothbrush)

• the desire of consumers to buy something and the ability to pay for it

Which term best defines elasticity of demand

• two goods that are bought and used together (ex: toothpaste and toothbrush)

• occurs when consumers react to a price increase by demanding less overall goods

• a measure of how much consumers react to a change in price

What term best fits this definition: factors other then price that causes a shift in the demand curve

• mean of production

• demand shifters

• Elastic demand

• None of the above

What does it mean when an economist says that a consumer has "demand" for a good or service?

• The consumer is able to afford the good/service but not at the price offered by producers.

• The consumer is willing and able to afford the good or service at the price being offered.

• The consumer wants the good/service but does not have the money to afford it.

Which of the following pairs of goods would be considered complementary?

• Hand Soap and Hand Sanitizer

• Samsung Galaxy and Apple iPhone

• Phone and Charger

Which term fits this definition: the quantity of a good or service that producers are willing and able to provide

• Supply

• Demand

• elasticity

• Demand shifters