Economics: Chapter 3 Test Review

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

The situation that exists when quantity demanded changes only slightly or not at all in response to a change in price.

• Inelastic Demand

• Elastic Demand

• Law of Demand

• Demand

The situation that exists when quantity demanded changes greatly in response to a change in price.

• Elastic Demand

• Inelastic Demand

• Law of Demand

• Demand

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

How much quantity is requested on a demand curve.

• Quantity Demanded

• Substitute Good

• Utility

• Purchasing Power

Lists quantities of goods consumers are willing and able to buy at various prices; as price goes up, demand goes down.

• Demand Schedule

• Demand Curve

• Elastic Demand

• Inelastic Demand

Increase/decrease in a consumer's purchasing power caused by changing prices of goods/services.

• Income Effect

• Total Revenue

• Price

• Purchasing Power

There are 5 determinants of demand. Besides the prices of related goods or services and the income of buyers, what are the three other determinants of demand?

• Price of Good/Service

• Preferences of Consumers

• Consumer Expectations

• Quantity of An Item

• Company Profit

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