Вы находитесь на странице: 1из 2

Economics Chapter 4 Review Game 1. What are the three types of elasticity?

? (Only one answer per student) elastic inelastic unit or unitary 2. The Fly High Company raised the price of kites but found no change in total revenue. What type of elasticity do the kites have? Unit or unitary 3. What happens to the quantity demanded of a product when the price of the product falls? It inceases 4. Which of the following would not make the demand curve shift? preferences of consumers change price increases(ANSWER) the income of consumers change the number of consumers in the market changes 5. What is the satisfaction gained from consuming a good? Utility 6. What is the amount of money a company receives for selling its goods? Total revenue 7. Which one of the following can cause a change in demand? a change in consumer tastes (ANSWER) the substitution effect the income effect. inefficient use of the resources 8. Which type of elasticity would describe the following statement? A price increase does not have a significant impact on buying habits. INELASTIC 9. What 3 things must be present in order to have DEMAND? (Only one answer per student) desire, ability, and willingness to own something 10. What effect does an increase in consumer tastes have on the demand curve? It shifts the demand curve to the right 11. A pencil cost 10 cent. A computer cost $1,200. If there is a price increase, which one has the more inelastic demand? Pencil 12. Why? The lower the price of the item the more inelastic the demand & it takes less of ones income the pay the increase. 13. What is the amount of money a company makes by selling its goods? Total revenue 14. How do you calculate total revenue? Price multiplied by quantity demanded (or sold) 15. There are lots of substitutes for widgets. There are no substitutes for wombles. Which one has the more inelastic demand? Wombles

16. Which one of the following has an inelastic demand? Televisions Life-saving medication (ANSWER) Computers Cell phones 17. If you keep buying a product despite an increase in its price, the demand for the product is _____ Inelastic 18. Paper Clips RUs rasied the price of paper clips and found that total revenue went up. What type of demand do paper clips have? Inelastic 19. What is the additional satisfaction gained by the consumption of one more unit of a good? Marginal utility 20. What are goods that are bought in place of one another? Substitutes 21 An increase in the price of TOE-TACKS causes an increase in the demand for TOE-TAPE. What can you conclude about the two goods? They are substitutes 22. The Weird Stuff in a Jar Corporation raised the price of jars of toe jam and found that total revenue went down. What type of demand do jars of toe jam have? Elastic 23. If the price of finger puppets decrease and sales increase, which of the following apply? A change in demand has taken place The demand for finger puppets is inelastic The demand curve shifts to the right A change in quantity demanded has taken place(ANSWER) 24. Which of the following apply to the graph? Shift of curve 25. Which of the following apply to the graph? Movement along curve 26. What states that consumers can afford to buy more of a good if its price decreases? The Law of Demand 27. What are goods that are used jointly in consumption; hence the demand for one rises as the price of the other falls and the demand for one falls as the price of the other rises? Complements 28. Gas is a necessity. Steak is a luxury. Which one has an elastic demand? Steak 29. An increase in the price of corkboards causes a decrease in the demand for thumb tacks. What can be concluded about the products? They are complements 30. What is the change in consumption resulting from a change in the price of one good relative to the price of other goods? The substitution effect