Chapter 4

On a demand curve, a change in quantity demanded is represented by...

a movement along the curve

Elasticity of demand measures...

how much buyers respond to a change in price

The demand for necessities such as milk, electricity, and water is usually... a. inelastic b. elastic c. unit-elastic d. none of the above

a. inelastic

With complementary goods, which of the following occurs? a. the demand for one good moves in the opposite direction as the price of the other good b. the demand for one good moves in the same direction as the price of the other good c. the supply of one good moves in the opposite direction as the price of the other good d. the demand for one good does not affect the price of the other

a. the demand for one good moves in the opposite direction as the price of the other good

Market demand represents...

all individual demand curves added together

If the demand curve shifts to the left, it means...

buyers will want to buy less

When goods are substitutes, which of the following occurs? a. the demand for one good moves in the opposite direction as the price of the other good b. the demand for one good does not affect the price of the other c. the demand for one good moves in the same direction as the price of the other good d. the supply of one good moves in the opposite direction as the price of the other good

c. the demand for one good moves in the same direction as the price of the other good

If the number of buyers in the market increases, which of the following will happen? a. the supply in the market will decrease b. the supply in the market will increase c. the demand in the market will increase d. the demand in the market will decrease

c. the demand in the market will increase

Which of the following will NOT change the demand for a product? a. a change in price of a substitute b. a change in income c. a change in expectations about the future price of the product d. a change in the price of the product

d. a change in the price of a product

The law of demand can be represented... a. as a schedule listing prices and quantities demanded b. in words c. in picture form as a graph d. all of the above

d. all of the above

Which of the following would increase demand for a good? a. increased immigration b. higher birthrate c. higher prices in the future d. all of the above

d. all of the above

If there are few or no substitutes for a good, then which of the following is true? a. the demand would not change b. the supply would be elastic c. the demand would be elastic d. the demand would be inelastic

d. the demand would be inelastic

If demand for a good is elastic and its price decreases, total revenue...

goes up

If a decrease in income increases the demand for a good, then the good is...

inferior

A change in quantity demanded can be caused by...

price

If the demand for computers increases, the demand curve will...

shift to the right

What will happen in the car market if consumers expect higher prices in the near future?

the demand for cars will increase

The market is any place...

where buyers and sellers meet

A normal good...

will be in higher demand if a person's income increases

In economics, demand means...

willingness and ability to buy a good