C3:Worksheet – Flashcards
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Are willing to buy at various prices
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In economics, the best demand for a good, refers to the amount of the good people:
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Inverse relationship between the price of a good and the willingness of consumers to buy it.
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The law of demand refers to the
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Buyers buy less of it
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The law of demand indicates that as the price of a good increases:
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Substitute goods ate now relatively cheaper
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Consumers buy less of a good as it's price increases because:
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When non price determinants, like income and the number of buyers, are unchanged.
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According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
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Consumer income The prices of other goods Consumer tastes and preference
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The "other things being equal" clause in the law of demand does NOT allow which of the following factors to change
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Downward-sloping demand curve
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The law of demand is graphically demonstrated by a(n):
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Upward movement to the left along the demand curve
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A decrease in quantity demanded is given by a(n)
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Lower prices
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An increase in the quantity demanded of a good is MOST often due to:
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Adding up all the individual demand curves for pears
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We can find the market demand for pears by:
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Quantity demanded
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A movement along a demand curve is called a change in:
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Demand curve has shifted to the right
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When economists say the demand for a product has increased, they mean the:
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Consumers become more energy conscious
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Which of the following is most likely to shift the demand curve for electricity to the left
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A fall of price of auto insurance
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Which of the following would shift the demand curve for autos to the right
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An increase in the price of televisions
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Which of the following will NOT shift the demand curve for televisions
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Demand curve for X to the right
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If X is a normal good, a rise in consumer income will shift the:
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Increase in the price of a substitute good
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Which of the following g will cause the demand curve for a good to shift to the right?
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A decrease
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Under the law of supply, any decrease in price will cause __________ in quantity supplied
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The price of the good
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According to the law of supply, there is a direct relationship between quantity supplied and
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Price of the product has risen, and consequently, suppliers are producing more of it
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When economists say the quantity supplied of a product has increased, they men the
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Farmers that grow soybeans can also grow corn, and the price of soybean drops by 75
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Which of the following is MOST likely to increase the supply of corn
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Supply curve for A to the right
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A technological improvement in producing a good A would be a shift in the
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The supply of doctors to increase
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If more people enter medical school, we can expect
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An increase in demand for that good
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Which of the following would NOT cause a shift in the supply curve for a good
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There is a shortage of the good
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The price of a good will rise when
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The quantity demanded exceeds the quantity supply end at the market
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If a shortage of a product currently exists in the market
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Shortage puts upward pressure on the price
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When the price of a good is below its equilibrium leave, a
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A market-clearing price (equilibrium price)
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When quantity supplied equals quantity demanded' there is
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Clears the market
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The MOST important characteristics of the equilibrium price is that it
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The market is in equilibrium
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If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then
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The price of the good is falling
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All of the following apply to the description of a market in equilibrium EXCEPT
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Shortages and surpluses
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The use of a price system eliminates
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Temporary
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In a market, competitive forces guarantee that any price other than equilibrium price is
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Defined as the condition in which there is neither a shortage or surplus Defined as the condition under which the separately formulated plans of buyer and sellers exactly mesh when tested in the market Represented graphically by the intersection if the supply and demand curves
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Market equilibrium is
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As the price increases, the quantity demanded decreases and the quantity supplied increases
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Which of the following is TRUE about the market equilibrium
