Chapter 4 Demand Vocabulary

Question 0

Substitute products

Answer 0

Android devices and iPhones

Question 1

Complementary products

Answer 1

Items like peanut butter and jelly

Question 2

Elasticity

Answer 2

Responsiveness of quantity change to price change

Question 3

Demand elasticity

Answer 3

Responsiveness of quantity demand to a price change

Question 4

Elastic demand

Answer 4

A small change in price will lead to a large change in quantity demand

Question 5

Inelastic demand

Answer 5

A large change in price, results in a small change in quantity demand

Question 6

Unit elastic demand

Answer 6

Product in which a proportional response happens with a change in price

Question 7

TE test

Answer 7

Price times quantity will help measure elasticity

Question 8

Demand

Answer 8

Desire, ability and willingness to buy a product

Question 9

Microeconomics

Answer 9

Study of small units of economics

Question 10

Demand schedule

Answer 10

A table examining quantity demand at specific price point

Question 11

Law of demand

Answer 11

As price goes up quantity demand goes down

Question 12

Market demand curve

Answer 12

Economic model examining quantity demand at all likely prices

Question 13

Marginal utility

Answer 13

Additional satisfaction derived from consuming one more item

Question 14

Diminishing marginal utility

Answer 14

Satisfaction will decrease as quantity consumed increases

Question 15

Change in quantity demand

Answer 15

Results in a movement along the demand curve

Question 16

Change in demand

Answer 16

Results in a shift in the demand curve

Question 17

Income effect

Answer 17

Change in quantity demand due to a change in the relative price of a product or products

Question 18

Substitution effect

Answer 18

Change in price results in consumers purchasing alternative products

Question 19

A change in demand for Levi’s jeans if polo jeans become the hot fashion item

Answer 19

shifts to the left

Question 20

A change in demand for defense equipment if the president announces all potential withdrawal from Iraq

Answer 20

Shifts left

Question 21

A change in demand for movie tickets if a major local employer goes out of business, forcing people out of work

Answer 21

Shift to left

Question 22

All change in demand for cassette players if cassette tapes are becoming more expensive

Answer 22

Shift left

Question 23

All change in demand for housing if the population of a town decreases by 20%

Answer 23

Shift left

Question 24

A change if a price of a product goes from $10 to five dollars

Answer 24

Moves along the demand curve from $10 to $5

Question 25

What three things are needed for demand to exist?

Answer 25

Desired ability and willingness

Question 26

What factor of demand is tied to celebrity endorsements?

Answer 26

Popularity

Question 27

What theory says satisfaction declines with increased purchases

Answer 27

Diminishing marginal utility

Question 28

How many factors can cause a change in demand

Answer 28

5; | Popularity, number of consumers, cost of substitute product, cost of complementary product, and consumer income

Question 29

How many factors can cause a change in quantity demand?

Answer 29

1; | Price

Question 30

What to economic models measure changes in quantity demand and demand?

Answer 30

Demand schedule and demand curve

Question 31

What does a demand for look like?

Answer 31

Download something to right

Question 32

What theory says as price increases, quantity demand will decrease?

Answer 32

Law if demand

Question 33

What term refers to area of economics that deals with decisions of small units, like individuals and firms?

Answer 33

Microeconomics

Question 34

What type of elasticity for most prescription drugs?

Answer 34

In elastic

Question 35

What type of elasticity for table salt?

Answer 35

In elastic

Question 36

What type of elasticity for RV's?

Answer 36

Elastic

Question 37

What type of US to city of demand lends itself to the highest profit margins?

Answer 37

Inelastic

Question 38

What happens to demand curve if there is an increase in demand?

Answer 38

Shifts to write

Question 39

What happens to demand curve if there is a change in price

Answer 39

No shift, but, movement along curve

Question 40

What happens to demand curve if a person is fired?

Answer 40

Demand curve shifts left

Question 41

What happens to demand curve if a product loses popularity?

Answer 41

Demand curve shifts to left

Question 42

If value of item is seven dollars, and with the fourth purchase the CS is $22, what is the TU at this point?

Answer 42

$50 total utility

Question 43

What term refers to the responsiveness of quantity to changes in pricing?

Answer 43

Elasticity

Question 44

Name the three different types of elasticity possible

Answer 44

Unit elastic, elastic, inelastic

Question 45

What test can you perform to measure elasticity?

Answer 45

TE test

Question 46

What type of elasticity of demand is displayed by increasing expenditures with increasing prices?

Answer 46

Inelastic

Question 47

What are the three determinants of demand elasticity?

Answer 47

Can purchase be delayed? Are there substitutes? Is purchase large portion of budget?

Question 48

What type of elasticity if TE does not change with a price change?

Answer 48

Unit elastic

Question 49

What is marginal utility of fourth purchase if TU with third was $500, and to you after fourth is $575

Answer 49

$75

Question 50

Who developed the invisible hand theory of economics?

Answer 50

Adam Smith