Supply Economics Review

Question 1

When you do the formula for elasticity, it comes out to 1. The item in question is

Accepted Answer

Unit elastic

Question 2

The marginal benefit from using each additional good or service tends to decline as it is used

Accepted Answer

Law of diminishing marginal utility

Question 3

Demand is ________ when quantity demanded changes significantly as price changes

Accepted Answer

Elastic

Question 4

A market demand schedule ALL consumers, not just the individual.

Accepted Answer

True

Question 5

__________ is a measure of how responsive consumers are to price changes

Accepted Answer

Elasticity

Question 6

In the total revenue formula, Q is

Accepted Answer

Quantity sold

Question 7

The law of demand of _____ states that as supply falls, consumers demand more of it as the item becomes scarce.

Accepted Answer

Value

Question 8

____________ is the desire to have some good or service and the ability to pay for it.

Accepted Answer

Demand

Question 9

Goods people demand when their income rises.

Accepted Answer

Normal Goods

Question 10

Goods that people demand less of when income rises.

Accepted Answer

Inferior Goods

Question 11

When you do the formula for elasticity, it comes out to a number greater than 1. The item in question is

Accepted Answer

Elastic

Question 12

_____________ is the amount of money a company receives from selling its products.

Accepted Answer

Total revenue

Question 13

The law of demand of ______ states that as prices fall, consumers want more of it.

Accepted Answer

Price

Question 14

When you do the formula for elasticity, it comes out to a number less than 1. The item in question is

Accepted Answer

Inelastic

Question 15

The amount of a product that a consumer will buy because their income changes.

Accepted Answer

Income effect

Question 16

In the total revenue formula, P is

Accepted Answer

Price

Question 17

________________ is when a percentage change in price results in the same percentage change in quantity demanded

Accepted Answer

Unit elastic

Question 18

Demand is ________ when quantity demanded changes little as price changes.

Accepted Answer

Inelastic

Question 19

When the use of one product increases the use of another product

Accepted Answer

Complementary Goods

Question 20

What determines elasticity?

Accepted Answer

All of these

Questions 20