Economics Demand

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

• consumption

• demand

• elasticity

• supply

What determines the price and quantity supplied of most goods?

• the consumers perception of neccesity

• the interaction of supply and demand

• the availability of substitutes for the goods

• the quality of the goods produced

What are inferior goods

• goods that are not produced well.

• goods that no one wants to buy

• goods that consumers demand rises for when their income rises

• goods that consumers demand falls when their income rises

Ceteris Paribus, or "all other things held constant" is an assumption that has which of the following effects on a demand schedule.

• It takes ONLY price into account

• It considers the effects of all possible changes on demand

• It is accurate no matter what changes occur

• It is accurate only at one price level

What shows the quantities of products demanded at each price by ALL consumers in the market

• an elasticity and consumption list

• a schedule of consumer prices

• A market pricing lists

• A market demand schedule

What does it mean when the demand for a product is inelastic

• Consumers will not buy any of the product when the price rises

• A price increase does not have a significant impact on demand from the consumer

• Consumers are sensitive to a change in the price of a product they consume

• There are few acceptable substitutes for the product that the consumer wants to purchase

What kind of table lists the quantity of a good that the individual consumer will buy at different prices.

• demand schedule

• demand curve

• market demand schedule

• market demand curve

What is the basic principle of the law of demand?

• The higher the price, the more consumers will demand

• Everyone has a limited income that they will spend

• When a good's price is lower, more consumers will demand it.

• Services are of interest the same way goods are

Which of the following is a good that might not be demanded by the consumer when prices rise?

• complement

• substitute

• inferior good

• luxury good

A shift in the demand curve means which of the following?

• A change in demand at every price

• a rise in prices

• A decrease in price and quantity demanded

• A change in consumer income