Question

part a circle the letter of the answer that correctly completes each sentence.

1. consumers affect demand by changing their minds about what they ——.

a earn b like and want c produce d supply others

1. economists use the word —— to measure the impact of price on demand.

a elasticity b profit c utility d necessity

1. juice, water, milk, and tea are —— for soft drinks.

a factors b utilities c income d substitutes

1. —— is the usefulness or satisfaction a consumer gets from a product.

a elasticity b utility c demand d bottom line

1. how much a product or service costs is its ——.

a price b income c demand d consumer taste
part b write the correct word from the word bank to complete each sentence.
word bank
necessities able demand curve luxury
profit inelastic substitute income

1. a(n) —— is a way to explain the law of demand in a picture.
2. to create demand, consumers must be willing and —— to buy a product.
3. a demand is —— if a price increase causes little or no change in demand.
4. a(n) —— is a thing that gives us pleasure but that we really do not need.
5. elasticity matters because it affects how much —— a business makes.
6. how much money a person makes is called ——.
7. demand for a product tends to go up if the price of the —— goes up.
8. medicine and water are examples of ——.

Explanation:

1. Consumers' preferences (like and want) directly influence demand.
2. Elasticity measures price - demand impact.
3. Juice, etc., can replace soft drinks (substitutes).
4. Utility is consumer satisfaction from a product.
5. Price is the cost of a product/service.
6. A demand curve visually explains the law of demand.
7. To create demand, consumers need to be willing and able.
8. Inelastic demand shows little change with price increase.
9. Luxury gives pleasure but isn't a need.
10. Elasticity affects business profit.
11. Income is the money a person makes.
12. Demand for a product rises if its substitute's price goes up.
13. Medicine and water are necessities.

Answer:

1. B. like and want
2. A. elasticity
3. D. substitutes
4. B. Utility
5. A. price
6. demand curve
7. able
8. inelastic
9. luxury
10. profit
11. income
12. substitute
13. necessities