Economics CH 1-5

Along a given supply curve , a decrease in price of a good will

Decrease producer surplus

A production possibility frontier that is a straight line slipping down from left to right would suggest that

The opportunity cost the products are constant

When a market is efficient

There is no way to make some people better off without making other people worst off

what is a good is normal

When income increases, the demand increases

Cheese over boiled new potatos, cheese price drops what will happen

a increase in demand for potatos

The typical supply curve illustrates that

other things equal the quantity supplied for a good is positively related to the price of the good

The law of demand states that other things equal

As the price increases the quantity demanded will decrease

A law of demand is

Consumer buy more personal computers because the prices have fallen

Suppose the local real estate market is in equilibrium. A recession causes local household income to decline, At the same time , construction of a large subdivision of new homes has just been completed. Give these two changes, we can predict the price of real estate will ______ and the quantity of real estate bought and sold will _________

Fall, Rise or Fall

If french fries and hamburgers are complements, hamburger ingredients rise . then what will happen to the equilibrium relative price of french fries ________ and the equilibrium quantity ________

Falls + Decreases

You notice that the price of DVD players falls and the quantity of DVD players sold increases. This set of observations can be a result of the

Supply of DVD players shifting to the right

The model that economists construct

Usually makes simplifying assumption

The economy factor of production are not equally suitable for producing different type of good , this principle generates

the law of increasing opportunity cost