Chapter 2 The Price System and the Microeconomy Key Terms Quiz

The means of allocating resources in a market economy .

• Price mechanism
• Market

Where buyers and sellers get together to trade .

• Price mechanism
• Market

The quantity of a product that consumers are willing and able to buy at different prices.

• Demand
• Demand Curve
• Demand Schedule
• Joint Demand

When two goods are consumed together.

• Demand
• Demand Curve
• Demand Schedule
• Joint Demand

Represents the relationship between the quantity demanded and price of a prouct.

• Demand
• Demand Curve
• Demand Schedule
• Joint Demand

The data from which a demand curve is drawn.

• Demand
• Demand Curve
• Demand Schedule
• Joint Demand

One whose demand increases as income increases.

• Normal Goods
• Inferior Goods
• Substitute
• Complement

A good consumed with another.

• Normal Goods
• Inferior Goods
• Substitute
• Complement

One whose demand decreases as income increases.

• Normal Goods
• Inferior Goods
• Substitute
• Complement

An alternative good.

• Normal Goods
• Inferior Goods
• Substitute
• Complement