Chapter 4 Quiz
- 1. Name: ____________________________ Class: _________________ Date: ____________ Economics Chapter 4 Quiz LTHS Mr. Cress A. Key Concepts Directions: Write the letter of the correct answer in each blank. _____ 1. For most products and services, increased price results in A. demand for fewer products C. demand for more products B. reduced demand for substitutes D. increased demand for complements _____ 2. An increase in the price of milk causes a decrease in the demand for cereal. The two products are A. substitutes B. complements C. unrelated D. demand eleastic _____ 3. Advertising, fashion trends, and new product introductions serve to A. create consumer needs C. increase income effectiveness B. create consumer demand D. minimize the income effect _____ 4. Because a modest price increase has little or no effect, the demand for the product is A. complementary B. inelastic C. elastic D. unit elastic _____ 5. A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred? A. A sharp increase in revenues demonstrated the elasticity of the product B. A small increase in revenue demonstrated the unit elasticity of the product C. A dramatic decline in revenues demonstrated the elasticity of the product D. A dramatic decline in revenues demonstrated the inelasticity of the product B. Applying Skills Directions: In the space to the right, draft a demand curve for the following data. Include both x and y axis and proper labeling (3 points) Movie Ticket Price Quantity Demanded 15 0 10 1 8 2 5 4 2 8
- 2. Name: ____________________________ Class: _________________ Date: ____________ Economics Chapter 4 Quiz LTHS Mr. Cress C. Identifying Cause-and-Effect Directions: For each of the following scenarios, indicate if the demand curve would shift to the right or to the left (1 point each) __________ Income increases __________ Income decreases __________ Price of substitute increases __________ Price of substitute decreases __________ Price of complement increases __________ Price of complement decreases __________ Positive taste/fashion __________ Negative taste/fashion __________ Positive expectations __________ Negative expectations D. Applying Skills Directions: Use the total expenditures test for demand elasticity. In the space, chart a demand curve for each demand schedule and pick two points to mathematically determine elasticity In the ___________, indicate whether the demand curve is elastic, inelastic, or unit elastic Price Quantity Demanded Price Quantity Demanded Price Quantity Demanded 3 2 3 2 3 2 2 3 2 2.5 2 4 _________________(1 pt.) _________________ (1 pt.) _________________ (1 pt.) Demand curves and math: 1 pt. each