Chapter 4 Demand Quiz

What is the total expenditure when the price is 3 and the quantity is 2 in the Elastic Demand graph?

• $6

• $8

• $5

• $7

In the Inelastic Demand graph, what happens to the expenditure when the price decreases from 3 to 2?

• Increases

• Decreases

• Remains the same

In the Unit Elastic Demand graph, what is the expenditure when the price is 3 and the quantity is 2?

• $6

• $8

• $5

• $7

According to the Determining Elasticity table, what is the movement of both price and expenditure in an Inelastic demand?

• Opposite

• No Change

• Same

Consumers buy a different good when the price of something gets too high:

• Substitution effect
• Income effect
• Weather effect
• Demand effect

A change in which factor will be least likely to alter a consumer's ability to pay for a product?

• a consumer's income

• a consumer's tastes

• a change in the price of the product

• a fall in the tax on goods and services

Law of Demand states quantity demanded of a good or service varies________ with its price

A change in the consumer's income will cause a shift in the demand curve to the _________ for _______ and to the ________ for _________

• right for increase and to the left for decrease

• left for increase and to the right for decrease

• up for increase and to the down for decrease

• down for increase and to the up for decrease

A complement to a product increases the demand for the ________.

• substitute product
• original product
• complementary product
• alternative product

Elastic demand is demand that _________.

• changes significantly with price changes.
• is unaffected by consumer preferences.
• decreases as price increases.
• remains constant regardless of price changes.