Chapter 4 Demand   1. Demand is best described as __________.     A) wants but not needs     B) the desire, willingness, and ability to buy a product     C) a measure of the pleasure or satisfaction one gets from consuming a good or service     D) expenditures by business on plants and equipment   2. According to the Law of Demand, when the price of a good is lowered, demand __________.     A) increases     B) decreases     C) stays the same     D) fluctuates   3. A change in quantity demanded is __________.     A) the amount consumers would buy if prices increased     B) a change in the quantity of a product purchased in response to a change in price     C) a table recording the number of units of a good or service demanded     D) the desire to purchase a certain number of units of a good or service at a given price   4. A change in demand means that __________.     A) manufacturers can increase production by hiring more workers     B) prices remain constant for a long period of time     C) consumers are willing to buy different amounts of a product at the same prices     D) increasing the quality of a product will lead to more sales   5. The extent to which a change in price causes a change in the quantity demanded is called __________.     A) demand elasticity     B) the substitution effect     C) marginal utility     D) the market supply schedule   6. If demand for an item decreases with a small increase in its price, demand for that item is __________.     A) inelastic     B) unit elastic     C) elastic     D) perfectly inelastic   7. If a product has many substitutes, demand for that product tends to be __________.     A) elastic     B) inelastic     C) unit elastic     D) perfectly inelastic