micro ch.3
Economists use the term "demand" to refer to:
a schedule of various combinations of market prices and amounts/quantities demanded.
A price _____ (one word) is a minimum price fixed by the government, generally imposed above the equilibrium price.
floor
The supply curve illustrates the relationship between ______.
price and quantity supplied
The supply curve shows the relationship between:
price and quantity supplied.
Allocative efficiency refers to:
the production of the product mix most wanted by society.
The ability of the competitive forces of supply and demand to establish a price at which selling and buying decisions are consistent is called ______.
the rationing function of prices
If costs of production rise, the producer has an incentive to produce (one word) output.
less, lower, fewer, decreased, reduced, lesser, or low
Refer to the diagram. A shortage of 160 units would be encountered if price was:
$0.50
Refer to the diagram. A surplus of 160 units would be encountered if the price was
$1.60
Which of the following characteristics leads to a upward-sloping supply curve? Select all that apply .- Increasing opportunity costs - Increasing marginal costs - Diminishing marginal utility - A decrease in resource prices - An increase in resource prices - Increasing labor productivity
- Increasing opportunity costs - Increasing marginal costs
Which of the following are the characteristics of a competitive market?
A large number of buyers and sellers Standardized products
Which of the following will cause the demand curve for product A to shift to the left?
An increase in money income if A is an inferior good.
A decrease in equilibrium price and indeterminate result on equilibrium quantity is a result of which of the following?
An increase in supply and a simultaneous decrease in demand
According to the law of demand, which of the following statements are true, all other things being equal?
As price decreases, quantity demanded increases. As price increases, quantity demanded decreases.
The equilibrium price where the quantity demanded equals the quantity supplied is otherwise known as the ______-clearing price.
Market
Which of the following has the greatest effect on the quantity supplied?
Price
Choose all of the following that will cause a change in supply, not quantity supplied.
Technology Producer expectations Number of sellers
A decrease in demand while holding supply constant results in _______.
a decrease in both equilibrium price and quantity
The effects on equilibrium price and quantity due to an increase in supply and a simultaneous decrease in demand are shown by ______.
a decrease in equilibrium price and an indeterminate change in equilibrium quantity
The rationing function of prices refers to the:
capacity of a competitive market to equate the quantity demanded and the quantity supplied.
A ______ good is one that is used together with another good.
complementary
Blu-ray players and Blu-ray discs are:
complementary goods
A change in the number of buyers is a determinant of market
demand
If products A and B are complements and the price of B decreases, the:
demand for A will increase and the quantity of B demanded will increase
On a simple supply model, a change in quantity supplied is illustrated by a ______ and a change in supply is illustrated by a ______.
movement along the supply curve; shift of the supply curve
The location of the product supply curve depends on the:
production technology.
The price of ______ goods is a determinant of demand.
related
A leftward shift of a product supply curve might be caused by:
some firms leaving an industry.
The supply curve measures quantity ______ on the horizontal axis and ______ on the vertical axis.
supplied; price
Market ______ is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each possible price during a specific period.
supply