Chapter 4 Economics and Financial Literacy

Movement along the demand curve showing that a different quantity is purchased in response to a change in price

Prices for common vegetables tend to be elastic. Why?

Which term refers to a changing price that causes a proportional change in demand?

Demand elasticity is the extent to which a change in price causes a change in the quantity demanded.

When a change in price and a change in revenue move in opposite directions

Why is the Law of Demand called a "law"?

Net income is also called your __________

What is the main cause of change in quantity demanded?

Portion of a change in quantity demanded that is due to a change in the price of the other good

Changes in quantity demanded and changes in price have a(n) __________ relationship

Which would an economist consider a likely substitute for coffee?

What test do economists use to measure elasticity?

The deadline for filing your income tax return usually falls on ______________

For which product is demand likely to be the most elastic?

What is the relationship between income and demand?

To estimate elasticity compare the __of a price change to the __ of the change in total revenue

The portion of a change in quantity demanded caused by a change in consumer's income when the price of a product changes

On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of:

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit

Consider the term marginal utility. Which word is the best synonym for "marginal"?

Which product most likely has a demand that is inelastic?

Different amounts of a product are demanded at every price, causing the demand curve to shift to the left or right

Shows the quantity demanded by everyone who is willing & able to purchase a good at all possible prices at one time

Why is a demand curve downward sloping?

A demand schedule is best described as ___________

A fundamental law or idea

The sole determinate of elasticity is the answer to this question. Can this purchase be delayed?