Economics, Unit 3

Q1) A business anticipating a cold winter by manufacturing snow shovels in July is an example of _____ affecting a change in supply.

expectations

12) Select TWO facts about the law of demand.

As prices increase, people are less likely to buy that product and demand drops. As prices decrease, demand will increase for that product

1) Complete the acronym TRIBE ______ Tastes and Preferences ______ Related goods and services ______ Income ______ Buyers and Price ______ Expectations

T R I B E

4) Which items are NOT complement goods?

a radio and a television

1) The amount of a good or service that consumers are willing and able to purchase at a specific time is the ______.

demand

oriented

positioned in a definite direction or arrangement

change in supply

refers to any change in the quantity supplied when an influence other than price is present

Demand

refers to the relationship between quantity demanded of a specific good or service and the price of that same good

Q1) Which of the following is likely to shift the supply curve right?

scientists find a way to make solar panels more efficient at no extra cost

law of demand

states that as prices increase, people are less likely to buy that product, demand drops, and the demand curve shifts to the left; also states that as prices decrease, demand will increase for that product, which will shift the demand curve to the right

Q1) Quantity demanded or supplied is measured in units of ______.

time

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change in quantity demanded

when price is the cause of a change in demand and all other things remain the same

Q1) Cutting back on money spent on a hobby because of increasing medical bills is an example of _____ affecting a change in demand.

income

5) Complete the acronym NICEJAG. _____ Natural or man-made disasters _____ Input _____ Competition _____ Expectations _____ Joint supply _____ Alternative goods _____ Government action

N I C E J A G

1) ___ is the amount one is willing to sell or capable of selling at any given time and price

Quantity supplied

Q1) Which answer is NOT a factor that can change demand?

natural and man-made disasters

Q1) An increase in demand for a good related to an increase in income is characteristic of a(n) _____ good.

normal

Q1) Alberto owns a sporting goods store that specializes in soccer equipment. By trying different prices throughout the year, he has been able to construct this demand curve for soccer balls. How many soccer balls can Alberto expect to sell in a week at $25 each?

18

Q1) At which price point will Barry's have the most revenue?

E

2) ______ is a visual representation of the supply that shows the progression of quantity supplied of a good or service and the price of that good or service.

Supply curve

change in quantity supplied

a change in quantity supplied of a particular good or service as a result of a change in price

Q1) Which items are NOT substitute goods?

desk and couch

Q1) A(n) ______ good can be used in place of another good.

substitute

6) Quantity demanded is measured in units of ______.

time

6) What is the current price of an ounce of gold?

$1,917.30

3) _____ is a chart that describes the correlation between quantity supplied and price.

Supply schedule

alternative goods

goods that can be produced and supplied in lieu of another item

Q1) Which answer does NOT belong to the TRIBE acronym?

independent analysis

Q1) Demand for a(n) ____ good will fall as income increases.

inferior

4) Goods in _________ are goods produced from the same resource.

joint supply

9) The reason why the demand curve goes in the direction it does shows the ___ of demand.

law

4) Select FOUR facts about the law of supply.

As prices decrease, quantity supplied will decrease for that product. As prices decrease, the supply curve shifts to the left. As prices go up, quantity supplied of that product will also rise. As prices go up, supply increases and the supply curve shifts to the right

goods in joint supply

goods that are produced in conjunction with something else

2) _________ a change in the quantity people are willing to buy if something other than price changes ________ a good or service that will see an increase in demand as income increases _________ when price is the cause of a change in demand and all other things remain the same ________ goods or services that are used together; normally, a decrease in the price for one good will increase the demand for the other good ________ the purchase of normal goods to display wealth rather than meet real needs ________ one product that can be used in place of another product ________ a good or service that will see a decrease in demand as income increases and an increase in demand as income decreases

Change in Demand Normal Good Change in quantity demand Complement good Conspicuous Consumption Substitute good Inferior good

5) ________ Megan pays more for a certain brand of tea because it tastes better to her. ________ Justin delays buying a smartphone, hoping that he can purchase one for less in a holiday sale next month. ________ Katy tries to sell her laptop computer on a website that has many visitors. ________ Though hoping for an iced tea, Mya happily drinks the ginger ale offered by her friend.

Tastes and Preferences Expectation Buyers and price Related goods and services Income

6) Describe what aspect of TRIBE is at play in the impact of the bison meat market.

The biggest issue is related goods and services since the bison meat is a substitute good for other meat products.

normal good

a good or service that will see an increase in demand as income increases

3) The amount one is willing to buy or is capable of buying at any given time and price is the ________.

quantity demanded

2) A change in __________ affects the amount of a particular good or service as a result of a change in price.

quantity supplied

law of supply

states that as prices go up, quantity supplied of that product also rises, supply increases, and the supply curve shifts to the right; also states that as prices decrease, quantity supplied also decreases for that product, which will shift the supply curve to the left

3) Any change in the quantity supplied when an influence other than price occurs is a change in _________.

supply

4) The amount of a good or service that producers are willing and able to sell at a specific time is the _____________.

supply

Q1) The ______ is the amount of a service or good that producers are willing and able to sell at a specific time.

supply

11) The demand curve cannot move

false

7) Match each statement with the type of change in supply. _________ Leather and beef prices decline as ranchers raise more cattle. ________ The President announces a new program to help seniors pay for medicines. ________ Hotels are full after a tornado destroys homes in a nearby town. _________ The only railroad passing through town reduces the number of weekly trains. ________ A shoe factory converts from manufacturing tennis shoes to dress shoes in order to make a greater profit. _________ Residents buy canned goods and generators because an Atlantic storm might hit their community. _________ A shortage of steel leads to higher automobile prices.

joint supply government action natural or man-made disasters competition alternative goods expectations input

supply

the amount of a good or service that producers are willing and able to sell at a specific time

quantity supplied

the amount one is willing to sell or capable of selling at any given time and price

conspicuous consumption

the purchase of normal goods to display wealth rather than meet real needs

Demand Curve

the visual representation of the demand schedule; shows the progression of quantity demanded of a good or service and the price of that good or service

supply curve

the visual representation of the supply; shows the progression of quantity supplied of a good or service and the price of that good or service

change in demand

a change in the quantity people are willing to buy if something other than price changes

demand schedule

a chart that describes the correlation between quantity demanded for each price

supply schedule

a chart that describes the correlation between quantity supplied for each price

inferior good

a good or service that will see a decrease in demand as income increases and an increase in demand as income decreases

Q1) Which scenario does the graph represent?

a grocery store's reduction of ice cream inventories as winter approaches

Q1) Which of the following would NOT be an inferior good?

a leather couch

1) __________ goods can be produced and supplied in lieu of another item.

alternative

3) Which items are NOT substitute goods?

an automobile and a dump truck

Q1) Which shift does the chart show? \ --> \

an increase in demand

5) A ___________ describes the correlation between quantity demanded for each price in a chart.

demand schedule

Q1) Quantity _____ is the amount of a service or good that consumers are able and willing to purchase at a specific time.

demanded

Q1) Which answer does NOT belong to the NICEJAG acronym?

end production

Q1) ______ According to the law of demand, as prices rise, so will demand. (f) ________ Goods in joint supply are produced from the same resources. (t) ________ Conspicuous consumption involves only purchasing what is necessary. (f) ________ Change in quantity demanded is based solely on changes in price. (t) _________ According to the law of supply, as prices decrease, the quantity of a product decreases. (t) ________ According to the law of supply, as prices rise, so will supply. (t)

false true false true true true

complement good

goods or services that are used together; normally, a decrease in the price for one good will increase the demand for the other good

Q1) A normal good is defined by its relation to _____.

income

substitute good

one product that can be used in place of another product

7) Select the best answer. Which graphic shows a supply curve?

/ --> /

quantity demanded

the amount one is willing to buy or capable of buying at any given time and price

10) The demand curve can only be oriented in one direction.

true

2) A visual representation of the demand schedule, a demand ________ shows the progression of quantity demanded of a good or service and the price of that good or service.

curve