Micro/Macro-Economics Chapter 3B Habbard/O’Brien – Flashcards
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Table 3-1. (Not shown) The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. At a price of $5, the quantity demand in the market would be
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63 LBS.
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Table 3-1 (Not shown) The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. If the price from of loose leaf tea rises from $3 to$4, the market quantity demanded would
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increases by 64 IBS
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The income effect of a price changes refers to the impact of a change in
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the prices of a good on a consumer's purchasing power
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Which of the following will shift the demand curve for a good
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a decrease in price of a complementary good
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A movement along the demand curve for toothpaste would be caused by
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a change in the price of toothpaste
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When the Price of a good falls, consumers buy a larger quantity because of the ______________ effect and the _____________ effect
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substitution; income
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If the price grapefruit rises, the substitution effect due to the price change will cause
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a decrease in the quantity of a grapefruit demand
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If the price of an orchids falls, the substitution effect due to the price will cause
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an increase in the quantity of orchids demanded
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The __________ effect refers to the change in quantity demand for a good that results from the effect of a change in the good's price on a consumer's purchasing power
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income
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Which of the following generation categories has the largest population in the United States in 2015
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the millennials
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A firm must devote people, and money to designing a new product. Because any firm has only limited resources, it
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faces a trade-off, because resources used to develop one product will not be available to develop another product
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A(n)_________ is represented by a leftward shift of the demand curve while a(n) _________ is represented by a movment along a given demand curve
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decreased in demand; increas in quantity demand
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If, in response to a decreased in the price of grapes, the quantity of grapes demand increases, economists would describe this as
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an increas in quantity demand
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The law of demand implies, holding everything else constant,that as the price of gelato
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decreases,the quantity of gelato demanded will increase
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The phrase "demand has decreased" means that
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a demand curve has shifted to the left
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A supply schedule
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is a table that shows the relationship between the price of a product and the quantity of the product supplied
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If in the market for peaches the supply curve has shifted to the left,
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the supply of peaches has decreased
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If in the market for oranges the supply of oranges the supply has increased,then
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the supply curve has shifted to the right
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Last year, The Pottery Palace supplied 8,000 ceramic pots at $40 each. This year, the company supplied the same quantity of ceramic pots at $55 each. Based on this evidence, The Pottery Palace has experienced
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a decrease in supply
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What is the difference between an "increase in supply" and an "increase in quantity supplied"?
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An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increas in price
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One would speak of a changein quantityof a good supplied,rather than a change in supply, if
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the price of the good changes
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Which of the following would cause a decrease in in the supply of milk
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an increase the price of a product that producers sell instead of milk
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Refer to figure 3-2 (not shown) An increase in price of inputs would be represented by a movement from
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S2 to S1
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Refer to figure 3-2 (not shown) An increase in the number of firms in the market would be represented by a movement from
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S1 to S2
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Which of the following is the correct way to describe equilibrium in market
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At equilibrium, quantity demand equals quantity supplied
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At a product's equilibrium price
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the product's demand curve crosses the product's supply curve
