Name _________________________ Class _______________ Date _______________
CHAPTER
4
CHAPTER OUTLINE
Demand
2
Directions: Fill in the outline below. Filling in the blanks will help
you as you read and study Chapter 4.
I.
Section 1: Understanding Demand
A. Defining Demand
1. Demand exists when consumers are willing to ___________________
and able to ___________________.
2. The law of demand states that when the ___________________
of a good goes up, the ___________________ for that good
goes down.
3. Both the ___________________ effect and the ___________________
effect are factors that influence demand.
B. Demand Schedule and Demand Curve
1. A demand schedule is in the form of a ___________________.
2. A demand curve is in the form of a ___________________.
3. A demand curve is only accurate for a given set of
___________________ ___________________.
4. The demand curve always slopes ___________________
to the right.
II. Section 2: Shifts in the Demand Curve
A. Changes in Demand
1. People buy more ___________________ ___________________
and less ___________________ ___________________ when their
incomes go up.
2. Population growth leads to an ___________________ in demand.
3. ____________________ ____________________ and changes in fashions
or fads also affect demand.
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Name _________________________ Class _______________ Date _______________
CHAPTER OUTLINE (continued)
Demand
2
B. Demand for Related Goods
1. ___________________ are two goods that people buy and
use together.
2. ___________________ are goods that people use in place of
one another.
3. If the price of a product goes up, demand for its
complement will go ___________________.
4. If the price of a product goes up, demand for its
substitute will go ___________________.
III. Section 3: Elasticity of Demand
A. Elasticity
1. Elasticity is a measure of how much the ___________________
for a product changes when the ___________________ changes.
B. Effects on Elasticity
1. The demand for luxury goods is highly ___________________.
2. The demand for things people need, such as medicine,
is ___________________ .
3. Another factor that affects elasticity of demand is the
availability of ___________________.
C. Why Elasticity Matters
1. Elasticity affects the ___________________ ___________________
that a company receives for selling its products.
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