Chap 3 econ supply and demand

According to the law of​ supply, as the price of the good increases, it causes? A. movement downward along the supply curve. B. shift of the supply curve to the right C. shift of the supply curve to the left D. movement upward along the supply curve.

a movement upward along the supply curve

what would cause an outward (rightward) shift in supply? A.decline in labor productivity. B. The cost of an input increases. C. technological improvement. D. reduction in consumer incomes.

a technological improvement

what would cause an increase in demand for beef?

an increase in the price of fish, a substitute for beef

under the law of supply, what if there was an increase in the market price of oranges, there would be a?

an increase in the production of oranges

what does the law of supply state?

as price increases, quantity supplied increases, all other things equal.

The law of demand states that

as price​ increases, quantity demanded​ decreases, all other things equal.

If the price of coffee​ rises, and as a result the demand for sugar​ falls, this implies that these two goods are? substitutes or complements?

complements

in equilibrium, the quantity demanded by consumers is ____ the the quantity supplied by producers.

equal to

If the price of automobiles ____ and as a result the demand for motorbikes​ falls, this implies that these two goods are substitutes. increase, falls, or constant?

falls

If the price of tennis racquets​ falls, and as a result the demand for tennis balls _____, this implies that these two goods are complements. increase, falls, or constant?

increase

According to the law of​ demand, the quantity demanded of any commodity is​ ________ related to its​ price, other things being equal.

inversely

the law of supply implies that a _____ the supply curve occurs due to a change in market price. movement along or shift?

movement along

the law of supply states that there is a _______ relationship between the price and _____. 1. positive or inverse 2. quantity demanded or quantity supplied

positive, the quantity supplied

At the market equilibrium​ price,

quantity demanded equals quantity supplied.

If the price of bacon​ rises, and as a result the demand for sausage​ increases, this implies that these two goods are? substitutes or complements ?

substitutes

under the law of supply; what happens thus the price increases?

the quantity produced by firms increases

describe an inferior good

when consumer income increase, the demand for eggs decreases