Download Chapter 3 – Demand Name

Chapter 3 – Demand
worksheet
Name _________________________
Completion
1. In the following situation involving related goods, chicken is classified as a
________________ good: when the price of fish increases and the price of chicken
remains constant, a family purchases chicken.
2. In economic terms, the amount of satisfaction that an individual receives from
consuming a product is called _______________.
3. _______________ demand exists when a change in a good’s price has little impact on
the quantity demanded.
4. _______________ demand exists when a small increase in a good’s price causes a
major decease in the quantity demanded.
5. Peanut butter and jelly would be classified as _________________ goods.
6. The number of potential buyers that might demand a particular product determines
________________ size.
7. ________________ is when an increase or decrease in purchasing power causes a
change in prices.
8. ________________ is the amount of money individuals have available to spend on
goods and services.
9. The amount of a good or service a consumer is willing and able to buy during a given
time period is known as ___________________.
10. Non price factors that affect demand are ___________________ of demand.
11. Many consumers will continue to buy home heating oil even if the price increases.
Because there is a(n) ___________________ for heating oil.
12. In general terms, items that are not necessities or for which there are many substitutes
are said to have a ___________________ demand
13. An inelastic demand curve
(a) is almost vertical (b) is almost horizontal (c) is circular (d) can not be
illustrated on a graph
14. Substitute goods and complementary goods are known as ________________ goods.
15. Demand schedule and demand curves show that the relationship between price and
demand is ___________________________.
16. When the demand for a product decreases due to changing consumer preferences, the
demand curve __________________________________.
Define
17. An increase or decrease in purchasing power caused by changing in prices.
18. As more product units are consumed, the utility received from consuming each unit
declines.
19. The amount of a good or service a consumer will buy at varied prices during a certain
time.
20. The amount of money individuals can spend.
21. A table listing the amount of goods consumers will buy at a series of possible prices.
22. Non price factors that affect demand.
23. The degree to which changes in price affect the quantity demanded.
24. Plots information from a demand schedule to a graph.
25. An increase price causes a decrease in quantity demanded; a decrease in price causes
an increase in quantity demanded.
26. The tendency to substitute a lower-priced product for more a expensive product.
True or false
27. A change in the quantity demanded of cigarettes results from a change in the price of
cigarettes.
28. A graphical representation of a demand curve is called a demand schedule.
29. If the price of tennis racquets rises, the demand for tennis balls will tend to rise.
30. If the price of butter increases, the demand for butter will decrease.
31. If the price of butter increases, the demand for margarine will increase.
32. Identify the five determinants of demand.
33. What is the primary difference between demand and quantity demanded?
34. What factor(s) would cause a change in quantity demanded?
35. What factor(s) would cause a change in demand?
36. What does movement along the demand curve indicate?
37. What does a shift of the demand curve to the right or left indicate?
38. What three factors influence a market?
Illustrate the following:
Increase in quantity demanded
Decrease in quantity demanded
Inelastic demand
Elastic demand
Decrease in demand
Increase in demand
Answers:
1. Substitute
2. Utility
3. Inelastic
4. Elastic
5. Complimentary
6. Market
7. Income Effect
8. Purchasing Power / Real Income
9. Demand
10. Determinants
11. Inelastic
12. Elastic
13. A) is almost vertical
14. Related
15. Inverse
16. Shifts to the Left
17. Income Effect
18. Diminishing Marginal Utility
19. Quantity Demand
20. Purchasing Power / Real income
21. Demand Schedule
22. Determinants
23. Elasticity
24. Demand Curve
25. Law of Demand
26. Substitution Effect
27. T
28. F
29. F
30. F
31. T
32. Income, Tastes, Expectations,
Related Goods, # of consumers
33. All prices v one price
34. Price of the product
35. Anything BUT price
36. Change in Price or QD
37. Change in Demand
38. Supply, Demand, Competition