Definitions of terms
Demand Curve
Examples of Change in Demand
Elasticity of Demand
Critical Thinking
100
Demand
What is the willingness to buy a good or service and the ability to pay for it.
100
The Law of Demand states that:
What is the theory that when prices go down, quantity demanded increase. When prices go up, quantity demanded decreases.
100

Income

How much money a consumer makes

100
Definition of Elasticity
Demand is elastic if quantity demanded changes significantly as price changes.
100
Explain the two factors you need to have to demand a good or service.
What is the want of the good or service and the money to pay for it.
200
Normal Goods vs. Inferior Goods
Normal Goods are goods that consumers demand more of when their incomes rise while inferior goods are goods that consumers demand less of when their income rises.
200
What is the definition of a Demand Curve
What is graphically shown data produced by a demand schedule.
200

Consumer Tastes

Trends or fads 

200
Definition of Elasticity of Demand
What is a measure of how responsive consumers are to price change.
200
Why is quantity demand inversely related to price?
What is scarcity. No limited budget
300
Income effect
What is the change in the amount that consumers will buy because the purchasing power of their income changes.
300
A demand curve has a distinctive flow to it, no matter what. Please describe the "flow".
What is downward slopping and to the right
300

Consumer Expectations

How good is a product

300
Definition of inelastic.
What is if quantity demanded changes little as price changes.
300
The US government has used many strategies to reduce smoking. They have banned tv ads for cigarettes, ran public service messages about health risks and imposed taxes on cigarettes. What factors that affect demand have were they trying to influence?
What is Consumer Tastes and Income.
400
Substitution effect
What is the change in the amount that consumers will buy because they buy substitute goods instead.
400
A decrease in consumers income will result in a entirely new demand curve, please describe the change of the curve based off of the curve on the board.
What is the curve will shift to the left.
400

Substitute Goods

Goods that replace one another.  Iphone instead of Android

400
Elastic or Inelastic - Iphones go on sale, 20% off.... Change in demand goes up 50%....
Elastic
400

Why does the demand curve slop downwards?

Price increase, Qd decreases

500
Elasticity of demand
What is a measure of how responsive consumers are to price change.
500
The cost of production of dairy products decrease and producers are willing to lower the prices. Please describe how the demand curve on the board will change.
What is to the right.
500

Complementary Goods

goods that are purchased together. Hot dogs and buns, pancakes and maple syrup. 

500
Elastic or Inelastic - Iphones go on sale, 20% off.... Change in demand goes up 10%....
Inelastic
500
In June - Martorelli's Pizza Shop sold 1,000 slices of pizza at $2.50 each. In July, I sold 1,300 slices at $2.00 each. Is the demand elastic or inelastic. Use the formula on page 121 of your books.
What is elastic
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