Demand - Quiz

Consumers buy _____ of a good when its price decreases and _____ when its price increases

• less; more
• more; less

The Law of Demand says that when the price rises quantity demand goes ________ and when the price drops the quantity demand goes _______.

• down; up
• up; down

_______ effect is when a consumer replaces a more expensive item for a less costly alternative.

• Income
• Substitution
• I'm broke

________ effect happens when a consumer his/her consumption of a good based on how much money they make.

• Income
• Substitution
• I'm rich

A _________ ________ schedule is a table that lists the quantity of a good all consumers in a market will buy at each different price

• market demand
• market supply
• product outcome

A __________ good is a good that consumers demand more of when their incomes increase.

• inferior
• normal
• substitute

An __________ good is a good that consumers demand less of when their income increases.

• inferior
• normal
• substitute

________________ are two goods that are bought and used together

• Pairs
• Complements
• Package deals

Demand for a good that consumers will continue to buy despite a price increase is ___________

• elastic
• inelastic

Demand for a good that is very sensitive to changes in price is _________.

• elastic
• inelastic