Economics Review 2nd Bimonthly

Measure of consumer responsiveness that shows how a dependent variable responds to a change in a independent variable

• Elasticity

• Demand schedule

• Elastic

• Substitution effect

Part of economic theory that deals with behavior and decision making by individual units

• Change in quantity demanded

• Marginal utility

• Microeconomics

Describes the situation where a change in price causes a relatively larger change in quantity demand

• Demand schedule

• Substitutes

• Elastic

A change that is graphically represented as movement along the demand curve

• Demand

• Change in quantity demanded

• Unit elastic

Extra usefulness gained from using one more unit of a product

• Marginal utility

• Substitutes

• Unit elastic

Listing that shows the quantities demanded of a product at all prices

• Demand schedule

• Substitutes

• Unit elastic

Describes change in demand when a given change in price causes a proportional change in quantity demanded

• Elastic

• Unit elastic

• Substitutes

For most products and services, an increase in price results in:

• Decreased demand for the product

• Increased demand for the product

• Reduced demand for substitutes

• Increased demand for complements

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

• Substitutes

• Complements

• Unrelated

• Demand elastic

Advertising, fashion trends, and consumer expectations serve to:

• Create consumer needs

• Increase income efectiveness

• Create consumer demand

• Minimize the income effect