Econ ch 4

McDonald's sells 300 hamburgers each day at $2. According to the Law of Demand, how many would they sell if they increased the price to $4?

100 hamburgers

Nike sells 500 pairs of shoes at $100 per pair. According to the Law of Demand, how many would they sell if they decreased the price to $75

600 pairs of shoes

Remote Control and batteries would be classified at this type of related good

complementary

Consumers waiting to buy a good because they are expecting the price to drop in the near future is an example of this outside factor impacting the market

consumer expectations

Is the study of buyer's behavior in the market place

demand

An increase in the current price of a good would cause the quantity demanded to go

down

A good that a consumer buys less of even after they receive an increase in their income is known as

inferior good

This theory states that each time a consumer purchases an additional unit at the same price, satisfaction decreases.

law of diminishing marginal utility

A decrease in the general demand of a good would cause the curve to shift to the

left

A large amount of people leaving country would result in the demand curve for goods and services to shift to the

left

A good that a consumer purchases more of after they receive a bump in income is known as a

normal good

Companies spend millions of dollars on advertisements in hopes of changing consumers

preferences

The proper label for the y axis on a demand curve is

price

The proper label for the x axis on a demand curve is

quantity demand

An increase in the general demand of a good would cause the curve to shift to the

right

An increase in the population of a country or city would result in a shift to the _________ for the demand of goods and services.

right

The only two ways that the demand curve can shift is

right and left

coca Cola and Pepsi would be classified as this type of related good

substitute good

A decrease in the current price of a good would cause the quantity demanded to go

up

A change in the current price of a good will cause movement____ and _____ a demand curve.

up and down

demand studies the buyers ____ and ____to purchase goods in the marketplace.

willingness and ability