Economics Unit 2 CH. 4-7

Which term refers to the idea that price causes a proportional change in quantity demanded?

• elastic

• unit elastic

• inelastic

• total expenditures

For which product is demand likely to be the most elastic?

• a product with no subsititutes

• a product with inadequate substitutes

• a product with many adequate substitutes

• it is impossible to tell

What is the combination of desire, ability, and willingness to buy a product?

• change in demand

• change in quantity demanded

• demand

• demand curve

What is the rule stating that more will be demanded at lower prices and less at higher prices?

• change in demand

• law of demand

• demand elasticity

• demand

(blank) is the portion of a change in quantity demanded caused by a change in price that makes other products more or less costly.

• change in demand

• demand elasticity

• substitution effect

(blank) are the products related in such a way that an increase in price of one reduces the demand for both.

• complements

• demand elasticity

• marginal utility

• inelasticity

"Supply" refers to....

• the amount of elastic, inelastic, and unit elastic classifications

• the amount of a product offered for sale at all possible prices in a market

• movement along the curve

• an individual, business, or other group exchanging an amount of product with each other

The influence of high prices on the behavior of consumers is...

• an incentive for consumers to buy less

• incentive for consumers to buy more

• encouragement for consumers to modify their supply schedules

• no significant overall effect on consumer behavior

Labor in a factory is an example of which of these?

• a marginal product

• a diminishing return

• a fixed factor of production

• a variable factor of production

(blank) is the average price of a unit sold times the quantity sold.

• average revenue

• total revenue

• marginal revenue