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WorksheetsUnit 3 Test Review
Total questions: 58
Worksheet time: 42mins
The amount of a good or service that consumers are willing and able to buy at various prices during a given period.
Demand
Purchasing Power
Law of Demand
Total Revenue
A good that is commonly used with another good and for which demand increases (or decreases) when the demand for the related good increases (or decreases).
Complementary Good
Supplementary Good
Diminishing Marginal Utility
Purchasing Power
Increase/decrease in a consumer's purchasing power caused by changing prices of goods/services.
Income Effect
Total Revenue
Price
Purchasing Power
A product that purchasers use in place of another product, particularly if the price of the other product rises.
Substitute Good
Substitution Effect
Complementary Good
Law of Demand
The natural decreases in the utility of a good or service as more units of it are consumed.
Diminishing Marginal Utility
Total Revenue
Purchasing Power
Complementary Good
Consumers' tendency to substitute a lower-priced good for a similar, higher-priced one.
Substitution Effect
Demand
Substitute Good
Elastic Demand
The amount a consumer has to pay to purchase a certain product.
Price
Utility
Demand
Complementary Good
The amount of income that people have available to spend on goods and services based on the price of the item they wish to purchase.
Purchasing Power
Elastic Demand
Income Effect
Market Size
Which of the following correctly explains how a market size is affected?
More Buyers = Increased Demand; Less Buyers = Less Demand
More Buyers = Less Demand; Less Buyers = Increased Demand
Less Buyers = No Change In Demand; More Buyers = Increased Demand
Less Buyers = Less Demand; More Buyers = No Change In Demand
In November, what happens to the demand curve for turkey?
Shifts To The Right
Shifts To The Left
Stays The Same
Makes A U-Shape
After the holidays, what happens to the demand curve for turkey?
Shifts To The Left
Shifts To The Right
Stays The Same
Makes A U-Shape
What will happen to the demand for umbrellas if the weather report predicts rain for the next month?
Demand will increase
Demand will decrease
No Change
Demand Curves
slope upward from left to right
slope downward from left to right
show a positive relationship
slope downward from right to left
What will happen in the car market if consumers expect higher prices in the future?
The demand for cars will decrease
The demand for cars will increase
The supply of cars will drop
The demand for cars will not change
If the number of buyers in the market increases, which of the following will happen?
The supply in the market will increase
The supply in the market will decrease
The demand in the market will increase
The demand in the market will decrease
When goods are substitutes, which of the following occurs?
The demand for one good moves in the opposite direction as the price of the other good
The demand for one good does not affect the price of the other
The demand for one good moves in the same direction as the price of the other good
The supply for one good moves in the opposite direction as the price of the other good
With complementary goods, which of the following occurs?
The demand for one good moves in the same direction as the price of the other good
The demand for one good moves in the opposite direction as the price of the other good
The demand for one good does not affect the price of the other
The supply of one good moves in the opposite direction as the price of the other good
A change in quantity demanded can be caused by
Income change
Preference change
Price change
Price of a substitute
Which of the following pairs is an example of substitutes?
Cereal and milk
Calculators and ipods
Gatorade and Powerade
Water skiing and skateboarding
Which of the following would cause the demand curve to
shift to the left?
The average annual income increases
Government corporate taxes increase
Consumers begin to like the product
Price of a complementary good increases
What would not cause a change (shift) in the demand curve?
A decrease in the salary’s of the population
A change in popularity of the good
A change in price of the good
An increase in the price of a substitute good
How can expectations about a future price change consumer behavior?
If the price is expected to stay the same, immediate demand will decrease.
Immediate demand for a good is not related to future price expectations.
If a good is expected to be plentiful, demand will not be affected.
Immediate demand will increase, if a good’s price is expected to rise in the future.
If price of tea decreases, what is the affect on the demand for coffee?
The demand for tea is not affected
The demand for coffee decreases
The demand for tea decreases
The demand for coffee increases
Which of the following would cause the demand curve to
shift to the right?
A popular toys loses appeal
Suppliers expect higher prices in the future
Price of a substitute good decreases
The average annual income increases
The diagram represents a
Increase in demand
Decrease in demand
Consider the market for cars in Hong Kong. If the price of gasoline increases then the demand for cars will...
Increase
Decrease
Products that tend to be used together
Complements
Substitutes
Goods
Needs
Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are
Complements
Substitutes
Inferior goods
Resources
Weather, fashion trends, and health trends serve to create consumer demand. This is an example of which determinant of demand?
Number of consumers
Change in price of a related good
Consumer Tastes and preferences
Income
The government is giving every individual 18 and above a direct $20,000.00 tax rebate this year. What determinant of demand is this and what would be the likely impact on car sales?
Change in Consumer Tastes, which would increase demand for cars
Change in Consumer Price Expectations, which would increase car sales
Change in Number of Consumers in the Market, which would decrease car sales
Change in Consumer Income, which would increase car sales
Which of these best describes the law of demand?
If prices go up, quantity demanded will fall and if prices go down, quantity demanded will go up
If prices go up, quantity demanded will also go up and if prices go down, quantity demanded will also go down
There is no law of demand, each situation is unique and demand and prices cannot be predicted
Prices will go up for certain goods when quantity demanded goes up and vice versa
A change in the price of a good causes people to buy more or less of an item. This best describes the concept of
The demand curve
Change in quantity demanded
Change in demand
Elasticity
The quantity demanded of a good or service changes at all price levels best describes the concept of
Change in quantity demanded
Elasticity
Change in demand
Demand curve
Which of these shows a decrease in the quantity demanded?
Which of these shows an increase in the quantity demanded?
Iceberg and romaine are two different types of lettuce. For most consumers, iceberg and romaine are
Complements
Substitutes
Inferior goods
Resources
Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.
Elastic
Unitary elastic
Inelastic
Hyperelastic
Elasticity refers to
How producers of goods and services react to price changes
How consumers of goods and services react to price changes
How far a supply of scarce goods can be stretched
How often the price of a good or service changes when quantity demanded changes
During the COVID 19 Pandemic we are all experiencing now, and the information campaign from the Center for Disease Control highlighting that bacteria and other organisms cause and spread disease, will the demand curve for soap be more elastic or more inelastic?
More elastic
More inelastic
After more employers allow employees to telecommute, will the demand curve for cars be more elastic or more inelastic?
More elastic
More inelastic
Which of the following two goods is more likely to be inelastically demanded?
Demand for insulin
Demand for vitamins
Which of the following is not a determinant of demand elasticity?
Availability of substitutes
If the item is a necessity
How much cost represents income
Government spending
The price elasticity of demand measures how much....
Quantity demanded responds to a change in price.
Quantity demanded responds to a change in income.
Price responds to a change in demand.
Demand responds to a change in supply.
If a 10 percent increase in the price of a good leads to a 25 percent decrease in the quantity demanded of a good, demand is:
Inelastic
Elastic
If a 1 percent decrease in the price of a pound of oranges results in a smaller percentage decrease in the quantity demanded, then:
Supply is inelastic
Demand is inelastic
Supply is elastic
Demand is elastic
Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.
Elastic
Unitary elastic
Inelastic
Hyperelastic
Which of the following has more elastic demand?
Describe your demand for a product if you buy the same amount of it or just a small amount less after a large price increase.
elastic
unitary elastic
inelastic
hyperelastic
Which of the following has more inelastic demand?
If a consumer knows that a product will be going on sale later this week, how will their CURRENT demand be affected?
When a company raises the price of their product and it results in them making a profit, what kind of demand is that?
Elastic Demand
Inelastic Demand
When a company raises the price of their product and it results in their profits going down, what kind of demand is that?
Elastic Demand
Inelastic Demand
