Chapter 4 Demand
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| demand | combination of quantities that someone would be willing and able to buy over a range of possible prices at a given moment
🗑
|
||||
| microeconomics | branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
🗑
|
||||
| demand schedule | listing showing the quantity demanded at all possible prices that might prevail in the market at a given time
🗑
|
||||
| incentive | something that motivates
🗑
|
||||
| demand curve | graph showing the quantity demanded at each and every possible price that might prevail in the market
🗑
|
||||
| Law of Demand | rule stating that more will be demanded at lower prices and less at higher prices; an inverse relationship between price and quantity demanded
🗑
|
||||
| market demand curve | demand curve that shows the quantities demanded by everyone who is willing ans able to purchase a product at all possible prices at one moment in time
🗑
|
||||
| marginal utility | additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product
🗑
|
||||
| diminishing marginal utility | decrease in additional satisfaction or usefulness as additional units of a product are acquired
🗑
|
||||
| change in quantity demanded | movement along the demand curve showing that a different quantity is purchased in response to a change in price
🗑
|
||||
| income effect | that portion of a change in quantity demanded caused by a change in a consumer's income when the price of a product changes
🗑
|
||||
| substitution effect | the portion of a change in quantity demanded that is due to a change in the relative price of the good
🗑
|
||||
| change in demand | different amounts of a product are demanded at every price, cause the demand curve to shift to the left or to the right
🗑
|
||||
| substitutes | competing products that can be used in place of one another; products related in such a way that an increase in the price of one increases the demand of the other
🗑
|
||||
| completments | products that increase the use of other products; products related in such a way that an increase in the price of one reduces the demand for both
🗑
|
||||
| elasticity | a measure of responsiveness that tells us how a dependent variable, such as quantity demanded or quantity supplied, responds to a change in an independent variable such as price
🗑
|
||||
| demand elasticity | the extent to which a change in price causes a change in the quantity demanded; demand elasticity has three cases; elastic, inelastic, or unit elastic
🗑
|
||||
| elastic | type of elasticity in which a change in the independent variable (usually price) results in a larger change in the dependent variable (usually quantity demanded or supplied)
🗑
|
||||
| inelastic | case of demand elasticity where the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)
🗑
|
||||
| unit elastic | elasticity where a change in the independent variable (usually price) generates a proportional change of the dependent variable (quantity demanded or supplied)
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
PeaceIDABaker
Popular Economics sets