Ch 3.1 QUIZ

In economics, the concept of demand is defined as the desire to own something

• that has not yet been manufactured or produced.

• and a willingness to pay more than other consumers for it.

• that a manufacturer is capable of producing.

• combined with the ability to pay for it.

According to the law of demand, when the price of pizza goes up,

• consumers will buy less pizza.

• consumers will save more money.

• pizza restaurants will stop making pizza.

• pizza restaurants will make more money.

Juanita has noticed that the price of bagels has gone up. Because of this, she has decided to buy a less expensive yogurt every morning for her breakfast. This is an example of the

• income effect.

• law of demand.

• substitution effect.

• market demand schedule.

Marty just finished creating a market demand schedule for his hardware store. Which of the following is he most likely trying to determine?

• How many tools he sold last year to his customers.

• Which contractors are the best customers of his products.

• How many tools are sold to all consumers in the market at various prices.

• Which of his competitors is the greatest threat to his business.

If Tino responds to a sharp increase in his transportation costs by buying fewer clothes, he is demonstrating

• horizontal demand.

• an individual demand schedule.

• the income effect.

• the substitution effect.