Economic chapter 3

A favorable change in consumer tastes and preferences for a product will ______ demand, shifting the demand curve to the _______:

increase; right

The added cost of producing one more unit of output is called _____ cost

marginal

Diminishing ______ states that, in any specific time period, buyers will derive less satisfaction from each additional unit of the product consumed.

marginal utility

I decrease in demand while holding supply constant results

A decrease in both equilibrium price and quantity

Which of the following correctly states they affect on equilibrium price and quantity due to an increase in demand while holding everything else constant

3-D televisions become popular in the equilibrium price and quantity of 3-D television increase

A change in demand comes from a change in consumers minds because of

A change in a determinant of demand other than price

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 price and an indeterminate change in quantity

_____ in demand while holding supply constant _____ equilibrium price and _____ equilibrium quantity.

A decrease; raises; raises

The inverse relationship between price and quantity demand can be shown graphically by___ sloping curve

A downward

The willingness and ability of the consumer to buy normal product falls because of

A fall income

Which of the following scenarios describes the appropriate affects on equilibrium price and quantity due to a decrease in supply while holding everything else constant

A fishing tax is placed in all shrimp and the equilibrium price of shrimp increase while quantity decreases

A decrease in equilibrium quantity and indeterminate changes in equilibrium price is a result of which of the following

A simultaneous decrease in supply and demand

Which of the following refers to government financial assistance for the production of a good which lowers the producers cost and increase supply

A subsidy

Which of the following are effects of an increase in demand, while holding supply constant

An increase in both equillibrium price and quantity

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 and proportional decrease in demand

The effects of equilibrium price and quantity due to an increase in supply and proportional and simultaneous increase in demand are shown by :

An increase in the equilibrium quantity and an indeterminate change in price

Which of the following causes an increase in the quantity of a good purchased

An increase in the number of buyers

True or false: the inverse relationship between price and quantity demand is called the law of supply

False it's law of demand

If the price of hotdogs increase the demand for hotdog buns will

Decrease

A decrease in supply and a simultaneous and proportional decrease in demand will result in _____ equilibrium quantity, with ____ equilibrium price

Decrease in ; an indeterminate effect on

An increase in supply while holding demand constant result in a(n) ______ in equilibrium price, but a(n) ______ in equilibrium quantity

Decrease; increase

A buyer's intentions or plans in regards to the purchase of a product is known as

Demand

Change in the number of buyers is a determinant of market _____

Demand

Consumer expectations are a determinant of ____

Demand

Suppose the market for a good is in equilibrium assume that there is a decline in supply of the good in an increase in the demand for the good if the decline in supply is larger than the increase in demand equilibrium quantity will ____

Fall

Fundamental characteristics of demand other things equal is that as the price falls the quantity demand for a product decreases

False

True or false: a shortage occurs when quantity supplied exceeds quantity demand

False

True or false: if the demand for a good increases when consumer income rise then the good is considered inferior

False

True or false: in the supply and demand model quantity demanded is illustrated on the vertical axis wall price is illustrated on the horizontal

False

____ resource price raise production cost and, assuming they fixed product price, ____ profit

Higher; reduce

Which pair exemplifies complementary goods

Hotdog and relish

If an increase in supply is larger than a decrease in demand the equilibrium quantity will

Increase

In general a firm will ____ (increase/decrease) the output of a good or service if the price of the good is higher

Increase

Other things equal if the consumers believe that gas prices will rise in a week the demand for gas today wheel

Increase

A vast majority of goods and related to one another are called ____ goods

Independent

The vast majority of good that are not related to one another are called ___ goods

Independent

Products that have decreased Demand when consumer income rises and increased demand when consumer income fall are called ____ goods

Inferior

The law of demand describe a(n) _____ relationship between the price of a good or service and the quantity demanded of the good or service

Inverse

A demand curve shows the

Inverse relationship between price and quantity demanded for a product

If the cost of production rise, the producer has an incentive to produce ____ outputs

Less

the income effect indicates that a ____ price increase the purchasing power of income enabling consumers to purchase______ of a product and Vice versa

Lower ; more

Other things equal, firms will produce and offer for sale ___ of their product at higher price than at a low price

More

Which of the following are substitutes

Pepsi and Coca-Cola

A change in quantity demand is caused by an increase or decrease in the ____ of the product under consideration and nothing else

Price

As A result of a simultaneous and proportional increase in supply and decrease in demand ____

Price falls and the change in equilibrium quantity is indeterminate

Suppose a firm produces soccer balls and volleyball. However, an increase in the price of volleyballs entices the firm to produce more volley balls and reduce the production of soccer balls. This substitution in production is caused by a change in _____

Price of other goods

Which of the following describes the effect on equilibrium price and equilibrium quantity as a result of a decrease in supply and simultaneous and proportional increase in demand

Price rises and the change in equilibrium quantity is indeterminate

The interaction between buyer and sellers determines the equilibrium price and the equilibrium _____

Quantity

The price of the _____ used in the production process help determine the cost production incurred by firms

Resources

If the increase in demand is greater than the increase in supply, the equilibrium price will ____

Rise

The law of supply states that a price ___ the quantity supplied rises as price ____ the quality supplied falls

Rise :fall

He supply curve measures quantity ____ on the horizontal axis and ___ on the vertical axis

Supplied; price

An increase in ____ while holding demand constant results in a decrease in equilibrium price, but an increase in equilibrium quantity

Supply

Improvements in technology is a determinant of _____

Supply

The number of sellers or competitors in a market is a determinant of shifter of the ___ curve

Supply

I demand schedule illustrates the relationship between price and quantity in a____ formats whereas the demand curve is a ___ representation

Tabular; graphical

Which of the following specifically refers to demand?

The buyer side of any market.

Which of the following curve shows the quantity of a product that will be purchased at various possible prices other things equal

The demand curve

Which of the following shows the effect on equilibrium price and quantity due to a simultaneous and proportional decrease in supply and increase in demand

The equilibrium price of gasoline increases but the change in quantity is indeterminate

True or false When the price of one product rises, the demand for its substitute will increase

True

True or false: a surplus is when quantity supplied exceeds quantity demanded

True

True or false: equilibrium price is the price where the intentions of buyers and sellers match

True

True or flash: resource cost or changes in these cost to production are responsible for shifts in the supply curve

True

Which of the following illustrates the relationship between a good and its complement

When the price of tuition decreases, the demand for textbooks increase

Which of the following refers to a particular apportionment or mix of goods and services most highly valued by society

allocative efficiency

Which of the following are effects of a decrease in supply while holding demand constant

an increase in equilibrium price and a decrease in equilibrium quantity

A ___ good is one that is used together with another good

complementary

If the supply of corn increases, holding demand constant, the equilibrium price of corn will ____ and the quantity will ____.

decrease, increase

An inverse relationship between two variables is a(n) ___ relationship

negative

On a supply curve, ___ is labeled in the vertical axis

price

Which of the following has the greatest effect on the quantity supplied that producers are willing and able to supply

price

all of the following are the determinants of demand, except

price of substitutes in production

The production of a good or service in the least costly way is known as _____ efficiency

productive

The price of ___ goods is a determinant of demand

related

A ____ the demand curve represents a change in demand while a ____ the demand curve represents a change in the quantity demanded

shift of; movement along

Products whose demand varies directly with changes in money or income are called normal goods, or ______ goods:

superior

Producer expectations of future prices are a determinant of ___.

supply

Which of the following are the determinants of supply

taxes and subsidies, technology, resource prices

The supply curve is ____ sloping curve

upward