Chapter 4 test review
Vocab/concepts
Demand
Substitutes
Elastic
Demand schedule…shows?
Demand curve…how does it slope?
Market demand schedule
Market demand curve
Marginal utility
Law of demand
Diminishing marginal utility
Income effect
Complements
Microeconomics
Demand curves
What are they, what do they show, how do you read them?
Movement along the curve-causes
Movement of the curve – causes
When the curve moves left, what happened to quantity demanded?
When the curve moves right, what happened to quantity demanded?
Demand schedule
What are they, what do they show, how are they constructed, how do you read them?
3 types of elasticity
Elastic – definition and examples fresh veggies, butter, gas from a particular station
Inelastic – definition and examples: gas, doctor services
Unit elastic – definition and examples:
Which typed means smaller/less changes in QD
Which elasticity type means there is a greater change in QD?
How does price play a role?
Which one means change is proportional to price
***Look at the visuals on pages 108, 111
Be familiar with the reasons for change in QD
1.
2.
Be familiar with the reasons for change in D-6 determinants + examples
1.
4.
2.
5.
3.
6.
And apply examples
What is the difference between individual demand and market demand?
If given graphs/schedules how do you figure out market demand?
How changes in consumer tastes and consumer incomes affect demand. In what ways will
consumer tastes and income cause the demand curve to behave? Why
In what ways will we see the demand curve react to these changes?
Explain how changes in consumer tastes and consumer incomes affect demand. What is the
relation that popular toys competing in the market and their demand have in common with
other things that are popular to young adults. What effects does pop culture have globally
and with the US?