Supply and Demand Recitation Quiz - Ritter

If people expect the price of SUVs to decrease in the future​, then the demand for the Toyota Rav4 SUV would​ __________.

decrease - shift left

The concept of diminishing marginal benefits means that​ __________.

each additional unit consumed is worth less to you than the previous one.

For a trade to take​ place, a​ buyer's willingness to pay must be​ ____________.

either higher than the ​seller's willingness to accept or equal to the​ seller's willingness to accept.

market demand is derived by​ __________.

fixing the price and adding up the quantities that each buyer demands.

the concept of diminishing marginal benefits ________________ for goods that you like a lot.

holds true

If Honda decided to increase the price of its Honda CRV SUV​, then the demand for the Toyota Rav4 SUV would​ __________.

increase

If the number of people over the age of 16 in the country increased significantly​, then the demand for the Toyota Rav4 SUV would​ __________.

increase

If Honda decided to increase the price of its Honda CRV SUV​, then the demand for the Toyota Rav4 SUV would​ __________.

increase - shift right

An aggregated demand curve is created by summing the _______________________ on the __________________

quantity demanded at each price, individual demand curves

The Law of Demand states that as the price of a good​ increases, the ___________ decreases. This can be shown graphically with ___________________ demand curve or numerically in a table using a demand schedule

quantity demanded, a downward-sloping

When one of the five major factors​ changes, causing an increase in​ demand, the demand curve shifts

rightward

The supply curve represents​ ___________.

the minimum price sellers are willing to accept to sell an extra unit of a good.

The concept of diminishing marginal benefits states that

the more you consume of a good, your willingness to pay for an additional unit declines.

If the government sets a minimum wage for seasonal workers​, then the supply curve for sparkling wine would​ __________.

decrease

If the number of sellers of sparkling wine decreases significantly​, then the supply curve for sparkling wine would​ __________.

decrease

Which of the following would not be considered a market by an​ economist?

A dating website An online auction site such as ebay Your corner gas station

Are all markets perfectly​ competitive?

No, there are other market types where firms have considerable power to control the price.

Suppose you have a flashlight that takes three batteries to power it. If you buy the batteries one at a​ time, for which purchase will diminishing benefits set​ in?

When you buy the fourth battery.

In a perfectly competitive​ market, sellers​ _________ and buyers​ _________.

cannot charge more than the market​ price; cannot pay less than the market price.

Holding all else​ equal, if the price of a digital camera​ rises, then we can expect

a decrease in the quantity demanded of digital cameras.

What is meant by holding all else equal and how is this concept used when discussing movements along the demand​ curve?

all variables that can affect the demand for the good are held constant

In a perfectly competitive​ market, if one seller chooses to charge a price for its good that is slightly higher than the market​ price, then it will​ _________.

lose all or almost all of its customers.

A demand curve has a ------ slope due to the Law of Demand. The Law of Demand is based off of a​ consumer's willingness to pay -------- as marginal units are consumed.

negative, less

We make the assumption of holding all else equal when considering demand curves since we want to focus on the changes in the quantity demanded that result from changes in ________________________________ .

only the price of a good

Which of the following is not one of the four major factors that shifts the supply curve when it​ changes?

price of good itself

Which change causes a movement along the demand​ curve?

price of the good itself

Which is not one of the five major factors that shifts the demand curve when it​ changes?

prices of imputs used to produce the good

The lowest price that a seller is willing to receive to sell an extra unit of a good is called

willingness to accept

the highest price that a buyer is willing to pay for an extra unit of a good is called

willingness to pay

Does the shape of the market demand curve differ from the shape of an individual demand​ curve?

​​No, they both tend to be​ downward-sloping curves.