Economics Chapter 21 Test FORM B
the primary motive in business is to
increase profits
diminishing marginal utility
principle that additional satisfaction with a product tends to go down as more units are consumed
cars
product with demand elasticity
inelastic demand
situation in which price changes have little effect on the quantity demanded
inelastic supply
situation in which price changes have little effect on the quantity supplied
which example illustrates how changes in complement can influence demand?
the demand for lightbulbs increases when the price of lamps decreases
what is the main purpose of government price controls?
to correct unfairness in supply and demand
which sales strategy demonstrates an understanding of the principle of diminishing marginal utility?
consumers who purchase an item at full price may purchase another one at half price
factor affecting supply
cost of resources
supply curve
graph that shows the amount of a product that would be supplied at all possible prices in the market
demand is likely to be inelastic for goods that
have very few of no substitutes
which of the following is a characteristic of a market economy?
people have the freedom to choose from a variety of products
the vertical axis of a demand curve for a product displays
prices
examples of complements
DVD players and DVDs
demand for a product tends to increase when
consumers expect a shortage
minimum wage
lowest minimum amount that can be paid to most workers
technology
methods or processes used to make goods and services
which of the following causes a change in demand?
number of consumers
freedom of choice
one advantage of the price system
a demand curve shifts to the right when
people are willing to buy more of the same item at any given price
