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