Chapter 5 Post Quiz
Demand and Consumer Behavior

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Utility	a. Additional utility that a consumer derives from consuming one additional unit of a good.
	2. Marginal utility	b. Results from summing the marginal utilities to the third unit.
	3. Law of diminishing marginal utility	c. Stems from the fact that higher prices decrease the consumer's desired level of consumption.
	4. Total utility for the consumption of the third unit	d. Explains that when the price of a good increases, consumers will consume less of the good because their real incomes are lower after the price increase.
	5. Maximum satisfaction	e. The extra value that consumers receive above what they pay for that good.
	6. Upward sloping demand curve	f. hot dogs and hot dog rolls.
	7. Substitution effect	g. Consumers' ranking of different goods and services.
	8. Income effect	h. Occurs where marginal utility of the last dollar spent on each good is exactly equal to the marginal utility of the last dollar spent on any other good.
	9. Market demand curve	i. Derived by summing the demands of the individual consumers.
	10. Complements	j. Explains that when the price of a good increases, consumers will consume less of the more expensive good and more of some other good.
	11. Substitutes	k. Beef and chicken.
	12. Consumer surplus	l. One's utility grows at a slower and slower rate as you consume more and more units of a good.
	13. Air	m. An example of a free good.
	14. Relatively inelastic	n. The demand for illegal drugs on the part of hard-core drug users.