ss quiz review 3qrtr

MODIFIED T OR F. Type TRUE if the statement is TRUE, type the correct answer of the wrong underlined word if its FALSE.
Indicates willingness to buy a particular good or service. It refers to the quantity of a commodity in the market that the individual wants to purchase in a given period of time. This is called Supply.

MODIFIED T OR F. Type TRUE if the statement is TRUE, type the correct answer of the wrong underlined word if its FALSE.
Ceteris Paribus.
A Latin phrase that means
"All other factors held constant"

MODIFIED T OR F. Type TRUE if the statement is TRUE, type the correct answer of the wrong underlined word if its FALSE.
The law of demand function says that quantity demanded varies inversely with price, other things constant. Thus, the higher the price, the smaller the quantity demanded.

MODIFIED T OR F. Type TRUE if the statement is TRUE, type the correct answer of the wrong underlined word if its FALSE.
At a lower price, consumers can buy more. A decline in price increases purchasing power. This is called the Income Effect.

ANSWER.
Products or services whose consumption increases as income increases are called ______ goods.

ANSWER.
For some goods or services, the quantity goes down as income increases. This is called ______ goods.

ANSWER.
A decrease in the price of one good leads to an increase in the demand for other product. This is called ______ goods.

ANSWER.
At a lower price, consumers are incentivized to substitute the cheaper goods for similar goods that are relatively more expensive. What effect is this called?

ANSWER.
These are goods that are commonly used together, like shampoo and condition. These are called _____ goods

States that successive units of a given product yield less and less extra satisfaction. Therefore, consumers will only buy more of a good if its price is reduced.

• Law of Demand

• Diminishing Marginal Utility

• Elasticity of Supplication