Economics Chapter 3 Test Review

What is a necessary good?

The _______ is a relationship between the % change in quantity demanded and % change in price.

Are necessary goods elastic or inelastic?

What is an example of a type of good?

If a rebate is announced for cars next month by GM, what will happen to demand this month?

What type of price control does this graph represent?

Which option agrees with the law of supply?

If a elastic good raises the price, what happens to revenue?

If a inelastic good raises the price, what happens to revenue?

Are luxuries elastic or inelastic?

From the previous question, what will happen to the demand curve?

For a ________ good, the demand increases as income rises.

What are luxuries?

Which statement agrees with the law of demand?

If a good has __________________ then it is known as elastic.

What is a factor that causes demand to change?

According to the law of demand, when price goes up what happens to quantity demanded?

If gas prices are $4.50, what happens to the demand for SUVs?

From the previous question, what factor causes the shift?

As income rises and the demand for a good falls, then that good is an ___________ good. 

When income rises, what type of good has demand to fall ?

According to the law of supply, when the price goes up what happens to the quantity supplied?

Demand is _______ if the % in quantity demanded is less than the % change in price.

If a elastic good lowers the price, what happens to revenue?

What law states the more you get of one good the less utility you receive?