Lesson 1
A picture that explains the law of demand is an________
demand curve
What are products called that can be used in place of other products?
substitutes
Demand for a product tends to go up if the price of the _________ goes up.
substitute
Elasticity matters because it affects a business's ____________.
bottom line
income
demand
bottom line
The amount of goods and services poeple will buy at a given price is ________________
demand
What is the money called that a person earns from having a job?
income
The demand for gasoline changes with the ______.
seasons
Water and medicine are examples of a _____________.
demand
supply
necessity
necessity
How much a product or service costs is its ________.
price
What is something called that gives people pleasure, but that they do not need?
luxury
Satisfaction consumers get from a product is _________.
utility
Give an example of a luxury.
a fancy sports car, the newest cell phone, a castle, etc.
How much money consumers earn is _________.
income
Give two examples of elastic products.
sports cars, meat, gas prices,
The decrease in need because enough units are produced to meet demand is called _________.
diminishing marginal utility
Juice, water, milk and tea are ____________ for soft drinks.
better
substitutes
less
substitutes
The law of demand says that when the price of a good ___________, the demand falls.
rises
List at least two examples of inelastic products.
water, sugar, salt, bread, milk, etc.
The more ______ a person earns, the more goods and services the person can buy.
money
A picture that explains the law of demand is a ________.
demand curve
supply curve
pictograph
demand curve