Economics: Unit 3 Test Questions
and Answers 2024
3.1: Demand is more than just the desire to buy something. What else does it require? - -The ability to pay for it -3.1: According to the law of demand, what would you expect to happen in the car market as the price of automobiles goes up? - -You would expect the
demand of automobiles to decrease -3.1: When he saw that the price of the car model he had planned to buy had increased dramatically, Tino decided to purchase another brand instead.
Which economic principle does this demonstrate? - -The substitution effect -3.1: Because the cost of a taxi ride increased, Martina decided to start packing a lunch instead of ordering out from a nearby restaurant. Which economic principle does this demonstrate? - -Income Effect -3.1: What does an individual demand schedule do? - -Shows how changing prices affect quantity demanded -3.2: How does ceteris paribus relate to demand? - - -3.2: What effect does a rise in income have on demand? - -A rise in income
will cause the demand of a good to increase since people will have more money to buy more of an item -3.2: How does a change in demand relate to a demand curve? - -A change in demand will cause the demand curve to either shift left or right -3.2: Give an example of how businesses use demographic information. - -
Businesses use demographic information for determining what the best price
to sell something at is, and to identify who potential customers are -3.2: Think about the way businesses try to influence consumers' behavior. Make a list of all the ways businesses tried to influence you in the past 24 hours. For example, how many ads did you see? - -TV commercials for cars, specifically the safety of cars, Ads seen on electronic apps, like clothing and school related ads -3.3: What is elasticity of demand? - -The way that consumers respond to price change. Measures how drastically buyers will cut back or increase their demand for a good when the price rises or falls
and Answers 2024
3.1: Demand is more than just the desire to buy something. What else does it require? - -The ability to pay for it -3.1: According to the law of demand, what would you expect to happen in the car market as the price of automobiles goes up? - -You would expect the
demand of automobiles to decrease -3.1: When he saw that the price of the car model he had planned to buy had increased dramatically, Tino decided to purchase another brand instead.
Which economic principle does this demonstrate? - -The substitution effect -3.1: Because the cost of a taxi ride increased, Martina decided to start packing a lunch instead of ordering out from a nearby restaurant. Which economic principle does this demonstrate? - -Income Effect -3.1: What does an individual demand schedule do? - -Shows how changing prices affect quantity demanded -3.2: How does ceteris paribus relate to demand? - - -3.2: What effect does a rise in income have on demand? - -A rise in income
will cause the demand of a good to increase since people will have more money to buy more of an item -3.2: How does a change in demand relate to a demand curve? - -A change in demand will cause the demand curve to either shift left or right -3.2: Give an example of how businesses use demographic information. - -
Businesses use demographic information for determining what the best price
to sell something at is, and to identify who potential customers are -3.2: Think about the way businesses try to influence consumers' behavior. Make a list of all the ways businesses tried to influence you in the past 24 hours. For example, how many ads did you see? - -TV commercials for cars, specifically the safety of cars, Ads seen on electronic apps, like clothing and school related ads -3.3: What is elasticity of demand? - -The way that consumers respond to price change. Measures how drastically buyers will cut back or increase their demand for a good when the price rises or falls
