Exam (elaborations)
Economics: Unit 3 Test Questions and Answers 2024
- Course
- Institution
Economics: Unit 3 Test Questions and Answers 2024
[Show more]
Content preview
Economics: Unit 3 Test Questionsand Answers 2024
3.1: Demand is more than just the desire to buy something. What else does it require? - -The ability to pay for it -3.1: According to the law of demand, what would you expect to happen in the car market as the price of automobiles goes up? - -You would expect the
demand of automobiles to decrease -3.1: When he saw that the price of the car model he had planned to buy had increased dramatically, Tino decided to purchase another brand instead.
Which economic principle does this demonstrate? - -The substitution effect -3.1: Because the cost of a taxi ride increased, Martina decided to start packing a lunch instead of ordering out from a nearby restaurant. Which economic principle does this demonstrate? - -Income Effect -3.1: What does an individual demand schedule do? - -Shows how changing prices affect quantity demanded -3.2: How does ceteris paribus relate to demand? - - -3.2: What effect does a rise in income have on demand? - -A rise in income
will cause the demand of a good to increase since people will have more money to buy more of an item -3.2: How does a change in demand relate to a demand curve? - -A change in demand will cause the demand curve to either shift left or right -3.2: Give an example of how businesses use demographic information. - -
Businesses use demographic information for determining what the best price
to sell something at is, and to identify who potential customers are -3.2: Think about the way businesses try to influence consumers' behavior. Make a list of all the ways businesses tried to influence you in the past 24 hours. For example, how many ads did you see? - -TV commercials for cars, specifically the safety of cars, Ads seen on electronic apps, like clothing and school related ads -3.3: What is elasticity of demand? - -The way that consumers respond to price change. Measures how drastically buyers will cut back or increase their demand for a good when the price rises or falls
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72349 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now