supply and demand
A government-imposed price floor, above the equilibrium price, in the market for a good will result in:
A surplus of the good or service.
An increase in the average incomes of consumers will result in:
An increase in the demand for goods and services.
An improvement in technology used by producers of a certain good will result in:
An increase in the supply of the good.
If the number of consumers in the market for good A increases, what will happen to the equilibrium price and quantity of good A?
Equilibrium price and quantity will both increase
If producers expect the price of a good to rise, what will happen to the good's equilibrium price and quantity?
Equilibrium price will increase and equilibrium quantity will decrease
If the government imposes a tax on the production of a good or service, what will happen to the equilibrium price and quantity of the good?
Equilibrium price will increase and equilibrium quantity will decrease
When the price of good A rises, people start to drink good B. In this case:
Good B is a substitute good.
An increase in the price of a good would be illustrated on a demand graph as a:
Movement along the demand curve upward.
A decrease in the price of a good would be illustrated on a supply graph as a:
Movement along the supply curve downward.
According to the law of demand, as the price of a good or service increases, the:
Quantity demanded of the good or service will decrease.
According to the law of supply, if the price of a good or service increases:
Quantity supplied will increase.
If consumers expect higher coffee prices in the future:
The demand for coffee will increase now.
If good A is considered to be an inferior good, when incomes rise:
The demand for good A will decrease and the demand curve will shift to the left.
If the price of peanut butter were to increase, what would likely happen to the demand for jelly?
The demand for jelly would decrease—the demand curve would shift left
If the price of one of the resources used to produce a good decreases:
The supply curve for that good would shift right.
If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other.
True
If the government decides to subsidize the production of a good, the result would be a decrease in the equilibrium price and a decrease in the equilibrium quantity.
b. False
If a good is considered "normal" by economists, an increase in consumers' incomes will result in a decrease in the demand for the good.
false
what happens to price and quantity demanded when there is downward movement along the demand curve?
price decreases and quantity demanded increases
what happens to price and quantity demanded when there is upward movement along the demand curve?
price increases and quantity demanded decreases
when you shift the demand curve to the right, what happens to the quantity demanded at any given price?
quantity demanded increases
