Economics Chapter 4 Test

The amount of goods consumers are willing to buy at a given price is ______.

• demand

• income

• elasticity

• bottom line

Four factors influencing demand include price, _______, the demand for substitute goods, and consumer tastes.

• demand

• income

• elasticity

• bottom line

To measure the impact of the price effect, economists use the term ______.

• demand

• income

• elasticity

• bottom line

Elasticity matters because it affects a business's ______.

• demand

• income

• elasticity

• bottom line

If the price of a product rises, the demand of a substitute tends to _____.

• go up

• utility

• bottom line

• summer

The more _____ a person gets from a product, the more the person will be willing to pay for the product.

• go up

• utility

• bottom line

• summer

The demand for gasoline usually increases during the _____.

• go up

• utility

• bottom line

• summer

Demand has two parts: Consumers must be willing to buy, and they must have the _____ to pay.

• ability

• utility

• friends

• demand

A picture that explains the law of demand is a ______.

• demand curve

• pictograph

• utility

• supple curve

Water and medicine are examples of a ______.

• food

• luxury

• necessity

• utility