Economics Final Exam Review

quantity supplied

Time Amount Price

what is ties

Trend Imput (cost of production) Expectations Sellers - compliments -substitutes

a change in the demand for apples could result from any of the following except (hint: not septic)

a change in the price of an apple

What increases the supply of gasoline?

a decrease in the price of a resource used to produce gasoline, such as crude oil

The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

a decrease in the quantity of kayaks supplied

what increases the supply of a product

an increase in the expected future price of a product

what indicates that the law of supply applies to the makers of soda

an increase in the price of soda increased that quantity of soda supplied

what leads to an increase in the quantity supplied but not an increase in supply

an increase in the products price

an increase in the number of pineapple growers results in

an increase in the supply of pineapples and a rightward shift in the supply curve

the law of demand exists because

as price of a good rises, buyers judge it to be worth more

In the stock market, the price of a share of stock might fall one day and rise the next. This fluctuation indicates that

either demand or supply changed from one day to the next

If both the supply and demand curves shift simultaneously, we can predict what will happen to

either the price or the quantity, but not both

The technology associated with making computers has advanced. This change led to the price of a computer to ____ and the quantity ____.

fall; increase

other things remaining the same, the quantity of a good or service demanded will increase if the price the good or service

falls

the law of demand refers to

how the quantity demanded changes when the price of a good changes

The law of supply states that, other things remaining the same

if the price of a good increases, the quantity supplied increases

Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium quantity of beef will

increase

Researchers have found a hybrid corn that is cheaper to grow. This advancement

increases the supply of corn

A supply curve differs from a supply schedule because a supply curve

is a graph and the supply schedule is a table (supply schedule is the coordinate pairs)

explain why law of supply exists

larger output result in lowers costs of production

explain why the law of supply exists

larger outputs result in higher costs of production

teens demand more soda than any other age group. if the number of teens increases, everything else remaining the same,

market demand for soda increases

Elasticity of demand and what determines it

measure of how sensitive quantity demand is to price change. when substitutes or % of income increase, elasticity increases and vise versa

other things remaining the same, if the price of a good rises, the quantity supplied of that good increases. the describes a

movement along a supply curve

in a supply schedule, what changes?

price of a good

law of supply

prices increase, quantity supplied increses

When the demand curve shifts rightward and the market moves to a new equilibrium then the

quantity supplied increases

change in supply

shift in supply curve

the phrase 'change in demand' implies a

shift of the demand curve (caused my septic)

if the number of sellers decrease, then the supply curve ________, and the supply ________

shifts leftward; decreases

if a market begins in equilibrium, and then the demand curve shifts leftward, a

shortage is created, which is eliminated by a rise

if the demanded for used cars decreases after the price of a new car falls, used cars and new cars are

substitute goods

market demand curves are obtained by

summing the quantities every consumer is willing to buy at each different price

the law of supply results primarily from the fact that

suppliers have an incentive to use their resources in the way that brings the biggest return

what is quantity demanded?

the amount of a good people are able and willing to buy during a specific time period and at a given price

hot dogs and hot dog buns are complements. if the price of a hot dogs falls, then

the demand for hot dog buns will increase

people consume more soup as temperature falls. so, as cold weather approaches,

the demand for soup increases

to access Internet services, consumers must use a computer. if computer prices fall, what is the effect on the demand for internet services?

the demand increases

For concerts, the price is set by the promoter. If scalpers are able to sell their tickets for more than the admission price, then

the equilibrium price to the concert must be more than the set price

if the demand for a good increases when peoples income increase,

the good is a normal good

explain the behavior of marking products as 'on sale' at a lower than usual price.

the law of demand is being used to increase the quantity demanded (change in price=quantity demanded)

When a surplus occurs,

the price falls

How does an increase in supply affect a service's equilibrium price and quantity?

the price falls and the quantity increases

when moving along the demand curve, what changes?

the price of the good

Market equilibrium occurs when

the quantity demanded equals the quantity supplied

the 'law of demand' indicates that if the University of Maine increases the tuition, all other things remaining the same,

the quantity of classes demanded will decrease

If the number of companies producing computer chips increases, then

the supply of chops increases

if a higher price for wheat decreases the quantity of corn being produced, describe what is occurring

the supply of wheat increased and quantity of corn supplied decreased

If the price is below the equilibrium price,

there is a shortage

the price of salsa rises. how does the increase in the price of salsa affect the supply of salsa

there is no change to the supply of salsa but the quantity of salsa supplies increases

What is septic

Substitute goods Expectations (price trends) People (number of buyers) Trends Income (normal&inferior goods) Compliments

Consumers income increase and steaks are a normal good. The supply of beef cattle has fallen recently due to a harsh winter.

Steak demand increases Steak supply decreases Steak price increases Steak quantity ?

What shifts the supply curve of popcorn leftwards?

Decrease in the number of popcorn suppliers

If both producers and consumers believe that a product's price will rise in the future, then at the present, demand ____ and supply ____.

Decreases: decreases

If there is a surplus of a good, the quantity demanded is ____ the quantity supplied and the price will ____.

Less than; fall

Supply and demand decrease

Price ? Quantity down

Supply and demand increase

Price ? Quantity up

Supply increases and Demand decreases

Price down Quantity ?

Decrease in Demand

Price down Quantity down (same)

Increase in supply

Price down Quantity up (opposite)

Supply decrease and Demand increase

Price up Quantity ?

Decrease in supply

Price up Quantity down (opposite)

Increase in Demand

Price up Quantity up

Increase in demand

Price up Quantity up (same)

what would cause a rightward shift in of the supply curve of rutabaga?

a fall in the price of fertilizer used to grow rutabaga

quantity demanded

a point of the demand curve

change in which of the following factors do NOT shift the demand curve? a. the price of the good b. buyers income c. the price of a substitute good d. the number of buyers

a. the price of the good

demand

ability and willingness to buy

supply

ability and willingness to sell

market supply

all the supply of all of the markets in 1 industry

to be part of the supply for a good, a producer must be

both able and willing to supply the good

to be part of the supply for a good, a producer must

both be able and willing to supply the good

which of the following best represents a quantity demanded of pies? a. $5 per pie b. 6 pies c. 2 piers per week at $5 each d. 8 pies per month

c

one reason the demand for a laptop might increase is a

change in preferences as laptops become more potable, faster processors and larger hard drives

mulch is shredded wood and is a by-product in the production of lumber. because these 2 goods are produced together, they are

complements in production

when demand increases

consumers are willing to buy more at any price

law of diminishing marginal utility

decrease in interest after time (the example of relationships that Mr. Ridlen uses)

It is expected that the price of a bushel of wheat will increase in a month. This belief will result in a

decrease in the current supply of wheat

advances in productivity increase supply because they

decrease the cost of production

suppose the price of leather used to produce shoes increases. as a result, there is a ______ in the supply of shoes and the supply curve of shoes shifts __________

decrease, shifts leftward

shift in demand

demand curve moving left or right caused by septic

what is the difference between a demand curve and a demand schedule?

demand schedules provide a listing of quantities demanded at different prices; demand curves show an upward sloping relationship between price and quantity demanded

What shifts the supply curve for oranges?

disastrous weather that destroys half of the orange crop. (not related to price)

supply curves are

upward sloping