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Ch4SGH.docx - Chapter 4 Study Guide Name:_ 4.1 Key Terms:...

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Chapter 4 Study GuideName:___________________________4.1Key Terms:Demand– relation showing the quantities of a good that consumers are willing and able to buy perperiod at various prices, other things constantlaw of demand– quantity demanded varies inversely or negatively, with price, other things constantmarginal utility– the satisfaction you derive from an additional satisfactionlaw of diminishing marginal utility– the more of a good an individual consumes per period, other thingsconstant, the smaller the marginal utility of each additional unit consumedDemand curve-a curve or line showing the quantities of a particular good demanded at various pricesduring a given time period, other things constantquantity demand- the amount demanded at a particular priceindividual demand– the demand of an individual consumermarket demand- the sum of the individual demands of all consumers in the marketThink Critically:1.Many students would like to own expensive sports car. Is this considered demand? Why or whynot?
2.Homeless people need warmer clothes for the winter. Is this considered demand? Why or whynot?
3.How would the income effect of a price change be demonstrated by a $10 reduction in the pricetickets to a concert that resulted in a sell-out crowd?
4.Joe is willing to pay $1.50 for one taco after basketball practice but chooses not to purchase asecond taco for the same price. How does this illustrate the law of diminish marginal utility?
5.What is the average price of a lunch in the cafeteria at your school? What, approximately, is themarket quantity demanded at that price?

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Term
Spring
Professor
N/A
Tags
Supply And Demand, Running Shoes

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