What Is the Want-Satisfying Power of a Good or Service

question 147

Multiple Choice

What is the want-satisfying power of a good or service called?

• A) utility
• B) price
• C) buyer's attraction
• D) function

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Definitions:

Elasticity

A measure in economics to show how the quantity demanded or supplied of a good or service responds to a change in price.

Price Ceiling

A legally imposed maximum price on a good or service, intended to keep prices low for buyers.

Shortage/Surplus

A market condition where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus).

Price Floor

A government or group-imposed limit that prevents prices of goods or services from falling below a certain level.