(ECO) Ch.4 - Demand - Vocabulary

What does the term "microeconomics" refer to?

• The study of the entire economy

• The study of individual consumers and firms

• The study of government policies

• The study of international trade

The _______________ is a graphical representation of the relationship between the price of a good and the quantity demanded.

• Market demand curve

• Demand curve

• Change in quantity demanded

• Demand

According to the ______________, all else being equal, as the price of a good increases, the quantity demanded decreases.

• Substitution Effect

• Complements

• Income Effect

• Law of Demand

The ______________ measures how sensitive the quantity demanded is to a change in price.

• Elastic

• Demand curve

• Inelastic

• Demand elasticity

When the percentage change in price is greater than the percentage change in quantity demanded, the demand is considered ______________

• Inelastic

• Unit elastic

• Complements

• Elastic

If the price of peanut butter decreases and, as a result, consumers buy more jelly, peanut butter and jelly are examples of ____________.

• Elastic goods

• Complements

• Substitutes

• Income Effect

The concept of _______________ states that as you consume more of a good, the additional satisfaction from each additional unit diminishes.

• Marginal Utility

• Elasticity

• Substitution Effect

• Demand elasticity

What term is used to describe the change in the quantity of a good that consumers are willing and able to purchase due to a change in its price?

• Change in quantity demanded

• Elasticity

• Change in demand

• Demand curve

When the price of smartphones increases, and consumers decide to buy more tablets instead, smartphones and tablets are considered ____________.

• Elastic goods

• Income Effect

• Substitutes

• Complements

If the percentage change in price is equal to the percentage change in quantity demanded, the demand is considered _______.

• Inelastic

• Marginal Utility

• Unit elastic

• Elastic