Econ Ch 5/6 test

What is the desire to have some good or serivce AND the ability to pay for it.

• supply

• demand

When the price of a good or service falls, consumers buy more of it.

• Law of Supply

• Law of Demand

A demand curve slopes...

• downward

• upward

When the buying power of your income changes, even though the amount of income doesn't change.

• Inferior Goods Effect

• Real Income Effect

• Subsitution Effect

• Relative Price

A change in the amount of a product that people will buy because of a change in price is called

• Change in Demand

• Change in Supply

• Change in Supply Demanded

• Change in Quantity Demanded

When a change in the marketplace makes buyers buy different amounts of a good at every price.

• Change in Quantity Demanded

• Change in Supply Demanded

• Change in Demand

• Change in Supply

Goods that consumers demand less of when their incomes rise. ie. Dollar Store goods.

• Inferior Goods

• substitute goods

• Normal Goods

• Relative Prices

Goods and services that can be used in place of other goods and services to satisfy consumers are called Inferior Goods.

• True

• False

When the use of one product increase the use of another product ie. Chips and Salsa

• Subsitution Good

• Complementary Good

• Inferior Good

When a change in price, either up or down, leads to a larger change in quantity demanded.

• Elastic

• Inelastic