Lesson Quiz 4.1 - Economics

Demand is the desire, (a)   , and willingness to buy a product or service

Prices act as a motivating influence, or (a)   , that causes an individua; to take action.

The Law of Demand states that the quantity demanded of a product varies (a)   with it's price

The Market demand curve that shows the (a)   by everyone who is interested in purchasing a product at all possible prices.

As peopleuse more and more of a product, they encounter (a)  

A Demand schedule is best described as

• a graph

• an incentive

• data

• a time line

When the price of something increases, the quanitity demanded________

• increases

• decreases

• remains unchanged

• reverses

Consider the term marginal utility. Which word is the best synonym for marginal?

• useful

• satisfactory

• borderline

• additional

Why is a demand curve downward sloping?

• Because quanity demand increases as price decreases

• because of the natural elasticity of the market

• it shows how increasing incentives changes demand

• it reflects the desire, ability and willingness of consumers

Why is the Law of Demand called a "law"

• Because it is legally required

• because there are no exceptions to it

• because it has been demonstrated repeatedlu

• because it is an economic term