LESSON 3 PRACTICE QUESTIONS – Flashcards

In this Circular Flow example ... if shifts in Supply and Demand (driven by "choices") change the "Average Price" to $1.00 then the total dollar value of Goods and Services produced would be ____________ .

If increased taxes are imposed on producers, ___________ products will be provided in the market at each price (shift left).

A decrease in demand with supply remaining constant will yield a(n) __________ in equilibrium price and a decrease in equilibrium quantity.

If price decreases, a consumer is willing to buy __________.

Supply is provided by ____________ and demand is created by consumers.

Allocation of resources within the capitalistic system is accomplished through a ________ approach where buyers and sellers meet.

When the price in the graph above changes from $8 to $10, the quantity demanded will change from 3 units to _______ units.

"Demand" is a series of prices and the related quantities that consumers are willing ___________ to buy at a particular point in time.

In the table below, for every price that the D#1 increases, the Quantity Demanded indicates _______ more sales than the original demand schedule D.

The Law of Supply concludes that if prices decrease, then the quantity supplied will __________.

If a larger supply is demanded by consumers, suppliers are often able to ____________ the product price and provide a larger quantity.

As a person continues to consume more of an item, ________ s/he will get less additional satisfaction (utility).

In this Circular Flow example ... if shifts in Supply and Demand change the "Average Price" to $10.00 then the total dollar value of Consumer Spending would be ____________ .

If consumers think that prices would go down in the future, they will __________ their present demand.

The Law of Demand states that there is a(n)________ relationship between price and quantity.

In this Circular Flow example ... if shifts in Supply and Demand (driven by "choices") change the "Average Price" to $3.00 then the total dollar value of Goods and Services produced would be ____________ .

In a market system, producers are _________ seeking new opportunities to satisfy consumer needs.

If the price of an item B (which is a substitute for item A) increases, then people will buy ________ of A.

"Demand" is a series of _______ and the related quantities that consumers are willing and able to buy at a particular point in time.

Supply is provided by producers and demand is created by __________ .

When prices are ____________, lesser quantities will be provided by producers at all price levels all other things remaining the same.

If seasonal conditions favor an increase in the sale of an item, then the second schedule or graph line (D1) lies _______ the first schedule (D).

A decrease in demand with supply remaining constant will yield a(n) decrease in equilibrium price and a(n) ____________ in equilibrium quantity.