Econ Ch 4

Demand is measured not only by consumer desire for a product, but also by

• competition for the consumer

• demand for all similar products

• opportunity costs

• ability and willingness to buy the product

If the price of a product decreases and consumers buy more of the product,

• a change in demand has taken place

• a change in quantity demanded happens

• there has been an increase in demand

• the product is a complementary product

If consumer demand for sugar at 80 cents per pound results in $1000 revenue, and a drop in price to 50 cents per pound results in $1,250 in revenue, it may be concluded that

• demand is elastic

• demand would overtake supply

• demand is inelastic

• demand is unit elastic

If consumers’ income go up, for most products we can expect

• an increase in demand

• a substitution effect

• marginal utility to decline

• an increase in quantity demanded

An increase in the price of wombles causes a decrease in the demand for widgets. The two are

• substitutes

• complements

• unrelated

• demand elastic

The demand curve is always

• upward sloping

• downward sloping

• level

• irregular

Which of the following would cause a change in quantity demanded of a product?

• changing consumer tastes

• decreasing product price

• increasing consumer income

• changing price of related products

All of the following are examples of complements EXCEPT

• butter and margarine

• flashlights and batteries

• peanut butter and jelly

• cameras and memory cards

________________ is the part of economics that deals with behavior and decision making at the individual/local level.

• Macroeconomics

• Microeconomics

• Demand

• Supply

The extra usefulness that an individual gets from one more product is known as _________.

• Complement

• Subsitutes

• Marginal utility