Test Bank For Demand
Demand - ANSWERSCombination of desire, ability, and willingness to buy a product.
Quantity Demanded - ANSWERSAmount demanded at any given price.
Demand Schedule - ANSWERSListing showing the quantity demanded at all possible prices
that might prevail in the market at any given time.
Demand Curve - ANSWERSGraph showing the quantity demanded at each and every
possible price that might prevail in the market at any give time.
Law of Demand - ANSWERSRule stating that more will be demanded at lower prices and less
at higher prices, inverse relationship between price and quantity demanded.
Marginal Utility - ANSWERSSatisfaction or usefulness obtained from acquiring one more unit
of a product.
Law of Diminishing Marginal Utility - ANSWERSExtra usefulness or additional satisfaction
persona gets from acquiring or using one more unit of a product...the satisfaction you get.
Elasticity of Demand - ANSWERSMeasure of the way in which the quantity demanded
responds to the change in price.
Supply - ANSWERSAmount of product offered for sale at all possible prices in a market.
Quantity Supplied - ANSWERSAmount that producers bring to the market at at any given
price.
Supply Schedule - ANSWERSTable showing the quantities produced or offered at each and
every possible price in the marker.
,Supply Curve - ANSWERSGraph showing the quantities supplied at each and every possible
price in the marker.
Law of Supply - ANSWERSPrinciple that more will be offered for sale at higher and prices and
less at lower prices.
Market Supply Curve - ANSWERSSupply curve that shows the quantities offered at various
prices BY ALL FIRMS that sell product in a given market.
Elasticity of Supply - ANSWERSMeasure of the way in which the quantity supplied responds
to a change in price.
Cost of Production - ANSWERSAmount of money, resources, raw materials, labor, and
production it takes to make a good, item, or service.
Fixed Costs - ANSWERSCosts of production that don't change when the output changes.
Variable Costs - ANSWERSProduction costs that vary as the output changes (labor, energy,
raw materials).
Total Costs - ANSWERSVariable plus fixed costs, all costs associated with production.
Law of Supply and Demand - ANSWERSSupply of good and service increase when demand is
great (and prices are high) and will fall when demand is low (and prices are low).
Equilibrium Price - ANSWERSPrice where the quantity supplied equals the quantity
demanded, price that clears the market.
Surplus - ANSWERSSituation where quantity supplied is greater than quantity demanded at
a given price.
Shortage - ANSWERSSituation where quantity supplied is less than quantity demanded at a
given price.
, Price Ceiling - ANSWERSMaximum legal price that can be charged for a product.
Price Floor - ANSWERSLowest legal price that can be paid for a good or service.
income, tastes, substitutes, complements, expectations, number of consumers - ANSWERS6
Factors That Affect Demand
Elastic Demand - ANSWERSChanges in price cause a LARGE change in quantity demanded.
Inelastic Demand - ANSWERSChanges in price cause a SMALL change in quantity demanded.
Necessity, substituitability, income - ANSWERS3 Factors Affecting Elasticity of Demand
Ability to adjust - ANSWERS1 Factor Affecting Elasticity of Supply
Cost of resources, productivity, technology, taxes, expectations, regulations, sellers -
ANSWERS7 factors that will cause a change in supply
left - ANSWERSSupply goes up and curves goes _____.
right - ANSWERSSupply goes down and curves goes _____.
right - ANSWERSShortage is on ______ side of demand curve.
left - ANSWERSSurplus is on ______ side of demand curve.
inverse relationship - ANSWERSDemand has an _________ _________ with price and
demand.
Demand - ANSWERSCombination of desire, ability, and willingness to buy a product.
Quantity Demanded - ANSWERSAmount demanded at any given price.
Demand Schedule - ANSWERSListing showing the quantity demanded at all possible prices
that might prevail in the market at any given time.
Demand Curve - ANSWERSGraph showing the quantity demanded at each and every
possible price that might prevail in the market at any give time.
Law of Demand - ANSWERSRule stating that more will be demanded at lower prices and less
at higher prices, inverse relationship between price and quantity demanded.
Marginal Utility - ANSWERSSatisfaction or usefulness obtained from acquiring one more unit
of a product.
Law of Diminishing Marginal Utility - ANSWERSExtra usefulness or additional satisfaction
persona gets from acquiring or using one more unit of a product...the satisfaction you get.
Elasticity of Demand - ANSWERSMeasure of the way in which the quantity demanded
responds to the change in price.
Supply - ANSWERSAmount of product offered for sale at all possible prices in a market.
Quantity Supplied - ANSWERSAmount that producers bring to the market at at any given
price.
Supply Schedule - ANSWERSTable showing the quantities produced or offered at each and
every possible price in the marker.
,Supply Curve - ANSWERSGraph showing the quantities supplied at each and every possible
price in the marker.
Law of Supply - ANSWERSPrinciple that more will be offered for sale at higher and prices and
less at lower prices.
Market Supply Curve - ANSWERSSupply curve that shows the quantities offered at various
prices BY ALL FIRMS that sell product in a given market.
Elasticity of Supply - ANSWERSMeasure of the way in which the quantity supplied responds
to a change in price.
Cost of Production - ANSWERSAmount of money, resources, raw materials, labor, and
production it takes to make a good, item, or service.
Fixed Costs - ANSWERSCosts of production that don't change when the output changes.
Variable Costs - ANSWERSProduction costs that vary as the output changes (labor, energy,
raw materials).
Total Costs - ANSWERSVariable plus fixed costs, all costs associated with production.
Law of Supply and Demand - ANSWERSSupply of good and service increase when demand is
great (and prices are high) and will fall when demand is low (and prices are low).
Equilibrium Price - ANSWERSPrice where the quantity supplied equals the quantity
demanded, price that clears the market.
Surplus - ANSWERSSituation where quantity supplied is greater than quantity demanded at
a given price.
Shortage - ANSWERSSituation where quantity supplied is less than quantity demanded at a
given price.
, Price Ceiling - ANSWERSMaximum legal price that can be charged for a product.
Price Floor - ANSWERSLowest legal price that can be paid for a good or service.
income, tastes, substitutes, complements, expectations, number of consumers - ANSWERS6
Factors That Affect Demand
Elastic Demand - ANSWERSChanges in price cause a LARGE change in quantity demanded.
Inelastic Demand - ANSWERSChanges in price cause a SMALL change in quantity demanded.
Necessity, substituitability, income - ANSWERS3 Factors Affecting Elasticity of Demand
Ability to adjust - ANSWERS1 Factor Affecting Elasticity of Supply
Cost of resources, productivity, technology, taxes, expectations, regulations, sellers -
ANSWERS7 factors that will cause a change in supply
left - ANSWERSSupply goes up and curves goes _____.
right - ANSWERSSupply goes down and curves goes _____.
right - ANSWERSShortage is on ______ side of demand curve.
left - ANSWERSSurplus is on ______ side of demand curve.
inverse relationship - ANSWERSDemand has an _________ _________ with price and
demand.
