Ch+4+Review

__Ch 4 Review__

1. demand curve 2. normal good 3. income effect 4. inelastic 5. unitary elastic 6. law of demand 7. complements 9. when consumers react to an increase in a good's price by consuming less of that good and more of other goods. 10. income, consumer expectations, population, consumer tastes and advertising. 11. to compare the elasticity of the good. 12. availability of substitutes, relative importance, necessities versus luxuries, and change over time. 13. yes, because inferior goods are cheaper. we can limit this by decreasing price of the superior goods. 14. I agree because you get more money putting down the cheaper good.