Chapter 4: Demand

When prices rise for goods/services our real incomes drop and vice versa for dropping prices.

The table that lists the quantity of a good/service that a person will buy at each price 

A measure of how consumers react to changes in price.

True/False: Raising prices for goods/services with elastic demand can increase sales & revenue

True/False: Changes in consumer tastes & preferences never shift demand

True/False: A rise or fall in population will shift the demand curve.

The graphic/visual of the law of demand; shows demand for goods/services at different prices.

True/False: If a good/service has many substitutes its demand will be elastic

True/False: Consumer expectations will shift the demand curve.

True/False: A good/service has unitary elastic demand if elasticity equals 1

True/False: Lower prices for goods/services with elastic demand can increase sales & revenue

Goods that are usually sold together, when you buy electronics you also need batteries

True/False: Advertising can create and shift in demand for a product.

True/False: Changes in income will shift the demand curve.

True/False: If a good/service has few substitutes its demand will be inelastic

Law saying consumers will buy more goods/services when prices drop and less when prices rise.

True/False:  When prices change most people's demand will also change. 

True/False: If a good/service has little value to us it will have elastic demand, who cares?

True/False: Inelastic demand describes demand that isn't responsive to price changes

True/False: Luxury items have elastic demand; hard times bring a reduction in luxury items

The willingness & ability to buy goods/services at different prices:  producers depend on this

When prices rise for goods/services and we choose another similar product or replacement

True/False: If a good/service has great value, it will have inelastic demand, we'll pay more

True/False: Rising prices for goods/services with inelastic demand will increase revenue

True/False:Price changes bring changes in demand and are shown as movement on the demand curve