Economics Chapter 4: Demand

In addition to the desire to own a product, what else does demand include?

• The cost to produce the product

• The value and price of the product

• The desire and willingness and ability to buy the product

• The behavior and decision-making of people who buy the product

What are the two variables needed to calculate demand?

• The desire and ability to buy a product

• At a given point in time, the price of a product and quantity that would be purchased at that price

• The number of people willing to buy a product and the number and type of competing products

• Previous number of purchases and the likelihood of future purchases Previous number of purchases and the likelihood of future purchases

How is a demand schedule different from a demand curve?

• A demand schedule is a graph that shows the quantity demanded at each and every possible price that might prevail in the market at a given time, whereas a demand curve is a list that shows the quantity demanded at all possible prices that might prevail in the market at a given time.

• A demand schedule is a picture of the various products in a certain price range demanded by a particular group, whereas a demand curve is a table of the various products at each and every price demanded by a particular group.

• A demand schedule is a list that includes all the quantities demanded at one price by a certain segment of the market, whereas a demand curve is a graph that shows all the quantities demanded at one price by a certain segment of the market.

• A demand schedule is a list that shows the quantity demanded at all possible prices that might prevail in the market at a given time, whereas a demand curve is a graph that shows the quantity demanded at each and every possible price that might prevail in the market at a given time.

Which of these is an example of an incentive?

• An economic policy in a country

• The highest price that can be charged for a good or service

• A drop in the price of a product

• An industry owned and controlled by a government

When a price goes up, consumers are more likely to do what?

• Buy more

• Buy less

• Produce more

• Produce less Produce less

Why does the Law of Demand state that the relationship between price and the quantity demanded is inverse?

• Because when one goes up, the other goes up

• Because when one goes up, the other stays the same

• Because when one goes up, the other goes down

• Because when one goes up, the other goes up more

What does a market demand curve show?

• The quantities demanded by everyone who is interested in purchasing a product at all possible prices

• The quantities demanded by one person or firm interested in purchasing a product at all possible prices

• The quantity demanded by everyone for each and every possible product in an industry

• The products demanded by everyone in a certain market at all possible prices

In economics, the term utility refers to what?

• The price of a product

• The usefulness of a product

• The production cost of a product

• The re-sale value of a product

What is marginal utility?

• The change in the re-sale value of a product

• The extra production cost of a product

• The extra usefulness of a product

• The change in price of a product

Why do consumers experience diminishing marginal utility?

• Because they no longer like what they have purchased after a period of time

• Because they need more of a product after they make their first purchase of it

• Because they are forced to spend more money to buy additional products

• Because it usually seems as if the second item never gives as much satisfaction as the first