Ex. 8. Match the questions to the answers below

1. What does the law of demand describe?

2. How do the economists describe the effect when the satisfaction from a good or service begins to diminish?

3. What does diminishing marginal utility help to explain?

4. What is a change in demand?

5. What are the factors that cause the demand for any product to increase or decrease?

6. How can the changes in the prices of complements influence the demand?

7. What other factors can influence the demand for particular goods?

8. What is demand?

A. Economists describe this effect as “diminishing marginal utility.”

B. As there are goods that are often consumed together, a decrease in the price of one item is likely to increase the demand for the other.

C. It is a consumer’s willingness and ability to buy a product or service at a particular time and place.

D. It helps to explain why lower prices are needed to increase the quantity demanded.

E. They are changes in consumer income; changes in the price of substitutes; changes in the price of complements; changes in consumer’s tastes or fashion; changes in the number of buyers served by the market.

F. It describes the relationship between the prices and the quantity of goods and services demanded.

G. They are weather, demographic trend, government subsidies, taxes and other factors.

H. It is a change in the relationship between the price of an item and the quantity demanded.