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CCHS Chapter 4 Test
Demand!
Question | Answer |
---|---|
What do consumers need in order to have 'demand' for a good or service? | Willingness, Ability and Desire |
What is the chart used to show demand? | a demand schedule |
What does the Law of Demand state? | As prices increase, quantity demanded decreases As prices decrease, quantity demanded increases |
What is the graph that is used to illustrate demand? | A demand curve |
What happens to the quantity demanded when prices increase? How does that look on the graph? | Quantity demanded decreases. It is a movement downward along the curve from one value to another. |
If the price of a product changes and there is an equal change in demand because of the price change, what type of elasticity does this product have? | Unit elasticity |
When there's a shift on or along the demand curve this is know as a change in... | Quantity demanded |
If the price of a product changes and there is a large or significant change in demand due to this price change, this product is known as having what type of elasticity? | Elastic demand |
What is called when demand increases or decreases even if there was no change in price | Change in Demand |
What does a change in demand look like on a graph? | if there is an increase in demand the demand curve shifts right. if there is a decrease in demand the demand curve shifts left. |
What are the factors that will increase or decreases demand? (shift the demand curve right or left) | Income, number of consumers, substitutes, expectations, complements, tastes (I.N.S.E.C.T.) |
What happens to quantity demanded when prices decrease? | Quantity demanded increases |
What type of elasticity is a product if there is a price change and there is little to no change in demand after the price change was made? | The product is inelastic. |