Econ Vocab Unit Quiz P1

What is a Market?

• A group of buyers and sellers of a particular good or service

• A place where you go and buy groceries

• A group of business owners who come together and discuss profit

• A group of young entrepreneurs

Buyers Determine... Sellers Determine...

• Demand, Supply

• Supply, Demand

• Quantity, Profit

• Profit, Inflation

What is Demand?

• The amount of a good or service that a supplier is willing and able to supply at Various Prices

• The amount of profit a good or service makes at various prices

• The amount of a good or service that a consumer is willing and able to buy at Various Prices

• The amount of a good or service that a consumer is NOT willing or able to buy at higher Prices

What does the Law of Demand State?

• The higher the price of a good, the less people will demand that good

• The quantity of a good rises when the price of a good rises

What is Purchasing Power

• The amount of income that consumers have to spend on goods and services

• The amount of goods you scan at the grocery store

• The number of Purchases you make in a year

What is Income Effect?

• As a persons income decreases, their demand increases

• As a persons income increases, so does their demand

• As a persons income increases so does their supply

What is Substitution Effect?

• When you replace a more expensive product with a cheaper similar product

• When you replace a more durable product with a cheaper flimsy product

• When you replace a more soft product with a cheaper hard product

What is the Demand Schedule?

• The demand schedule is a table that shows the relationship between the quality of the good and the supply supplied by the suplier.

• The demand schedule is a chart that shows the relationship between the quality of the good and the number of buyers

• The demand schedule is a table that shows the relationship between the price of the good and the quantity demanded.

What is the Demand Curve?

• The demand curve is a graph of the relationship between the quality of a good when demand rises

• The demand curve is a graph of the relationship between the consumer and producers.

• The demand curve is a graph of the relationship between the price of a good and the quantity demanded.

What is Elasticity of Demand?

• Is the Degree to which changes in a good’s features affect the quantity supplied by consumers. 

• Is the Degree to which changes in a good’s quality affect the quantity demanded by consumers. 

• Is the Degree to which changes in a good’s price affect the quantity demanded by consumers.