If the price on a product goes up the quantity demanded will go down. This follows the economic theory of:

• Law of Demand
• elasticity
• income effect
• None of the above

The formula for calculating elasticity of demand is:

• The % change in price over the % change in quantity demanded
• The % change in quantity demanded over the % change in price
• The change in price over the change in quantity demaned
• The change in quantity demanded over the change in price

Consuming more of one good because of a change in price of another good is known as the 

• income effect
• substitution effect
• elasticity effect
• demand effect

What does it mean?

Ed < 1

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand

The desire, ability and willingness to buy a product 

• Demand 
• Supply 
• Consume 

Which of the following are determinants of demand for a product/service?

• Price of the product/service

• All of the above

• Desire to purchase the product/service

• Income of the buyer

Which of the following is a complement product to peanut butter?

• Jelly

• Sugar

• Mustard

• Soda

What does it mean?

Ed > 1

• Perfectly elastic demand

• Inelastic demand

• Perfectly inelastic demand

• Elastic demand

• Unitarily elastic demand

The effect of a change in consumer income on the quantity demanded of a good is known as:

• demand shift

• price effect

• income effect

• substitution effect

Which of the following factors can lead to a decrease in demand for a product?

• Increase in the price of a complement good

• Decrease in the price of a substitute good

• All of the above

• Increase in consumer income