Ch 4 ECON

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

• 1. Consumption

• 2. Elasticity

• 2. Demand

• Allocation

What are inferior goods?

• 2. Goods for which the demand rises when income rises

• 1. Goods for which the demand falls when income rises

• 2. Goods that no one wants to buy

• 1. Goods that are not well produced 

• table that lists the quantity of a good all consumers in a market will buy at each different price  

• • Market demand schedule

• demand schedule

• market schedule

• Supply and Demand Schedule

when consumers react to an increase in a  good’s prices by consuming less of that good and more of other goods

• Substitution Effect

• Income Effect

• Star Wars Effect

• Appeasement Effect

the change in consumption resulting from a change in real income

• Substitution Effect

• Income Effect

• Star Wars Effect

• Appeasement Effect

• When elasticity of demand is unitary, the % change in quantity demanded is exactly equal to the % change in the price

• True

• False

• No Idea

• total amount of money a firm receives by selling goods or services

• Total Gross

• • Total revenue

• Partial Revenue

• Partial Gross

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

• 1. People will not buy any of the product when the price goes up

• 2. A price increase does not have a significant impact on buying habits

• 1. There are very few satisfactory substitutes for the product

• 1. Customers are very sensitive to the price of the product

What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future?

• 1. Store the goods until the price rises

• 1. Sell the goods now and try to invest the money instead of resupplying

• 1. Sell the goods now but try to get the higher price for them

• 1. Store the goods indefinitely regardless of when the prices rise

Which of the following is the best example of the law of supply?

• 1. A sandwich shop increases the number of sandwiches they supply every day when the price is increased

• 1. A catering company buys a new dishwasher to make their work easier

• 1. A food producer increases the number of acres of wheat he grows to supply a milling company

• 1. A milling company builds a new factory to process flour to export