Download CH 4 QUIZ STUDY GUIDE NAME

CH 4 QUIZ STUDY GUIDE
NAME:_________________ DATE:________ PERIOD:______
1. In most products and services, increased prices result in :______________________.
2. An increase in the price of milk causes a decrease in the price of cereal. These two
products are:_____________________.
3. Advertising, fashion trends and new product introductions serve
to:__________________________.
4. Which of the following provides an example of complementary goods?
a. Pepsi and Coca –Cola
b. French fries and ketchup
c. Milk and orange juice
d. Beef and pork
5. Which of the following will move the demand curve to the right?
a. A reduction in the cost of corn that is used to feed pigs
b. A reduction in the price of pork
c. An increase in the price of beef
d. All of the above
6. What are the three determinants of elasticity? Why, or how do they work together to
affect demand?
7. What are the factors affecting demand?
8. How does the chapter discuss or relate the idea of cause and effect?
9. What one word sums up or describes elasticity?
10. What is the substitute effect?
Essays:
1- In your own words explain the concept of marginal utility and how it relates to the
concept of demand.
2- Explain why an item that has many close substitutes tends to have an elastic demand
3- Describe the difference between elastic demand and inelastic demand
Methods:
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Be able to plot a demand curve from a demand schedule.
Be able to read and interpret a demand curve (questions)
Terms you must know:
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Elasticity
Demand
demand curve
Marginal utility
Inelastic demand
Law of demand
There will be 13 questions worth 4 points each, and one essay question worth 8
points ., for a total of 60 points. The essay question you may choose from the list
above. All three questions will be on the test.
Good luck!