Week 3 Vocab Quiz

Demand is:

• The desire to own something and the ability to pay for it

• The amount of goods available

• The cost of production

• The supply of goods in the market

What is Quantity Demanded?

• The total amount of goods or services that consumers are willing and able to purchase at a given price in a given time period.

• The amount of goods available for sale in the market.

• The price at which goods are sold in the market.

• The difference between supply and demand.

Explain the difference between Demand Schedule and Demand Curve.

• A Demand Schedule is a table showing the quantity demanded at different prices, while a Demand Curve is a graph showing the same relationship.

• A Demand Schedule is a graph showing the quantity demanded at different prices, while a Demand Curve is a table showing the same relationship.

• Both Demand Schedule and Demand Curve are graphs showing the quantity demanded at different prices.

• Both Demand Schedule and Demand Curve are tables showing the quantity demanded at different prices.

The Law Of Demand (Pencil Theory) states that:

• as the price of a good increases, the quantity demanded decreases, ceteris paribus.

• as the price of a good increases, the quantity demanded increases, ceteris paribus.

• as the price of a good decreases, the quantity demanded remains the same, ceteris paribus.

• as the price of a good decreases, the quantity demanded decreases, ceteris paribus.

The difference between Change in Demand and Change in Quantity Demanded is:

• Change in Demand refers to a shift in the entire demand curve, while Change in Quantity Demanded refers to a movement along the demand curve due to a change in price.

• Change in Demand refers to a movement along the demand curve due to a change in price, while Change in Quantity Demanded refers to a shift in the entire demand curve.

• Change in Demand and Change in Quantity Demanded are the same and refer to a shift in the entire demand curve.

• Change in Demand and Change in Quantity Demanded are the same and refer to a movement along the demand curve due to a change in price.

What are Normal Goods vs Inferior Goods?

• Normal goods are those whose demand increases as consumer income rises, whereas inferior goods are those whose demand decreases as consumer income rises.

• Normal goods are those whose demand decreases as consumer income rises, whereas inferior goods are those whose demand increases as consumer income rises.

• Normal goods and inferior goods both have demand that increases as consumer income rises.

• Normal goods and inferior goods both have demand that decreases as consumer income rises.

What are Substitutions?

• A type of mathematical operation

• Goods that can be used in place of another good

• A type of grammatical error

• Goods that are often bought together

Complementary goods are:

• Goods that are used together

• Goods that are substitutes for each other

• Goods that are unrelated

• Goods that are luxury items

WTP (Willing to Pay) means:

• The maximum amount a consumer is willing to pay for a good or service.

• The minimum amount a seller is willing to accept for a good or service.

• The average amount consumers are willing to pay for a good or service.

• The fixed price set by the government for a good or service.

The Law of Diminishing Marginal Utility states that as a person consumes more units of a good, the additional satisfaction gained from consuming each additional unit will eventually decrease. Which of the following best describes this concept?

• The satisfaction from consuming additional units increases.

• The satisfaction from consuming additional units remains constant.

• The satisfaction from consuming additional units decreases.

• The satisfaction from consuming additional units is unpredictable.