Topic 3 (Part 1) Test_English_SH

Match the following

• Quantity Demanded

• Consumers want goods and can pay for them.

• Market Demand Schedule

• When something is too expensive, consumers will buy something else as a substitute.

• Demand

• A table that shows the demand of a good for all customers of a business.

• Substitute Effect

• The amount of goods that people want to buy.

• Income Effect

• If prices of a good increases, a consumer will spend the same amount of money, but will be able to buy less.

According to the law of demand, if the price of an item decreases, what would generally happen to demand?

• Demand would increase.

• Demand would decrease.

• Demand would stay the same.

According to the law of demand, when the price of an item increases, what would generally happen to demand?

• Demand would increase.

• Demand would decrease.

• Demand would stay the same.

Select ALL that apply: According to the substitution effect, which of the following would be good substitutes for driving a car if gas prices gets too high.

• Flying on a plane.

• Taking the bus.

• Riding on a subway.

Examine the market demand schedule. According to the schedule, if the price of a pizza is $4.00, what is the quantity of slices of pizza that will be demanded?

• 50 slices

• 100 slices

• 150 slices

• 200 slices

• 250 slices

According to the market demand curve, at what price would a slice of pizza cost if the demanded slices of pizza per day was 100 slices?

• $6

• $5

• $4

• $3

• $2

True or False: The Y-axis for a demand curve will always be the quantity demanded.

• True

• False

True or False: the X-axis for a demand curve will always be the quantity demanded.

• True

• False

Match the following

• Complements

• The reason why demand shifts or changes.

• Inferior goods

• A good that consumers demand less of when their income increases.

• Non-Price Determinants

• Goods that are used in place of one another.

• Substitutes

• Two goods that are bought and used together.

• Normal Good

• A good that consumers demand more of when their income increases.

Match the following

• Consumer expectations

• The characteristics of a population (age, race, gender, occupation, income level).

• Changes in Income

• What someone knows about the future can affect demand for certain goods today.

• Consumer Tastes and Advertising

• Demand for one good can shift because of the demand of another good.

• Price of Related Goods

• Advertising and trends people see online and in public will influence what they will want and like.

• Demographics

• Our income affects demand for most goods and services.