Download ECON ch. 4-1

ECON ch. 4-1
1.
_______ is the desire, ability, and
willingness to buy a product.
2.
An individual demand curve
illustrates how the quantity that a
person will demand varies on the
________ of a good or service.
Ch. 4 sec 1
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3. Economists analyze demand by listing prices &
desired quantities in a demand __________ (chart).
When the data is graphed, it forms a demand curve
with a ____________ slope.
4. The ___________ Demand states that the
quantity demanded of a good or service varies
inversely with its ______. When price goes ___, the
quantity demanded goes _____; when price goes
______, the quantity demanded goes ______.
Sec 1
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5. A _________ demand curve illustrates how the
quantity that all interested persons will demand
varies depending on the price of a good or service.
6. ____________ utility is the extra usefulness or
satisfaction a person receives from getting or using
one more unit of a product.
7. The principle of diminishing marginal utility states
that the satisfaction we gain from buying a product
___________ as we buy more of the same product.
Ch. 4 Sec 2
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1. The change in quantity ____________
shows a change in the amount of a product
purchased when there is a change in price.
2. The ________________ means that as
prices drop, consumers are left with extra
income.
3. The _____________ effect means that
price can cause consumers to substitute one
product with another similar but cheaper item.
Sec 2
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4. A change in demand is when people buy
different ____________ of the product at the
same prices.
5. A change in demand can be caused by a
change in _________, tastes, a price change
in a related product, consumer expectations,
and the number of ____________.
Ch. 4 Sec 3
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1. _______________ measures how
sensitive consumers are to price changes.
2. Demand is __________ when a change in
price causes a large change in demand.
3. Demand is ____________ when a change
in prices causes a small change in demand.
4. Demand is ___________ when a change
in price causes a proportional change in
demand.
Sec 3
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5. Price times quantity _________________
equals total expenditures.
6. Change in expenditures depend on the
elasticity of a demand curve – if the change
in price and expenditures move in ________
directions on the curve, the demand is
elastic; if they move in the _____ direction,
the demand is inelastic; if there is _________
in expenditures, demand is unit elastic.
Sec 3
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7. Demand is _________ if the answer to the
following questions are _______ a) can the
purchase be delayed? b) are adequate
substitutions available c) does the
purchase use a large portion of income
Ch. 5 sec 1
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1. _______ is the amount of a product that
would be offered for sale at all possible prices
in the market.
2. The _________ Supply states that
suppliers will normally offer more for sale at
high prices and less at lower prices.
3. An individual supply curve illustrates how
the quantity that a producer will make varies
depending on the price that will prevail in the
market.
Sec 1
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4. Economists analyze supply by listing quantities
and prices in a supply schedule. When the supply is
graphed, it forms a supply curve with an_________
slope.
5. A change in quantity supplied is the change in the
amount offered for sale in response to a change in
price.
6. Producers have the freedom, if prices fall too low,
to slow or ____ production or leave market
completely. If the prices rise, the producer can
__________ up production levels.
Sec 1
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7. A change in supply is when suppliers offer
different amounts of products for sale at all
possible prices in the market.
8. Factors that can cause a change in supply
include: the cost of _______; productivity
levels; technology; ______ or the level of
subsides; or government regulations.
9. Supply is _________ when a small
increase in price leads to a larger increase in
output & supply.
Sec 1
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10. Supply is ___________ when a small increase
in price causes little change in supply.
11. Supply is ___________ when a change in price
causes a proportional change in supply.
12. Determinants of supply elasticity are related to
how quickly a producer can act when the change in
price occurs. If adjusting production can be done
_________, the supply is elastic. Also, if substituting
for a given product is _______, the supply is elastic.
If production is ________, the supply is inelastic.