MICRO 2023 test 1 Review

reason surplus would not persist for very long

a surplus promotes sellers to lower the price to encourage buyers by increasing the incentive to buy

the demand for a product is likely to increase due to:

an increase in the number of buyers

change in quantity supplied

movements along a given supply curve in response to price changes of that good

table showing the quantities of a good a consumer is willing and able to buy at alternative prices in a given time period, ceteris paribus, is a ____

Demand schedule

there is neither a market surplus nor a market shortage because the quantity demanded by consumers at a specific price is identical to the quantity supplied at that same price at an ______

Equilibrium price

the ability and willingness to sell specific quantities of a good at alternative prices in a given time period, cateris paribus

Market supply

interaction between buyers and sellers determines equilibrium ___

Price and quantity

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

a decrease, shift leftward

the idea that factors other than those being considered in a particular analysis do not change, other-things-equal

ceteris paribus

the equilibrium price will ___ whenever the supply or demand curve shifts

change

determinants of demand

consumer taste, number of buyers, price of related good, consumer expectations, consumer income

the ability and willingness to buy specific quantities of a good at alternative prices in a given time period

demand

____ reflects a compromise between buyer and sellers, no other compromise yields a quantity demanded that's exactly equal to the quantity supplied

equilibrium

the price at which the quantity of a good demanded in a given time period equals the quantity supplied

equilibrium price

demand decreases and supply stays constant

equilibrium price falls and equilibrium quantity falls

supply increases and demand stays constant

equilibrium price falls and equilibrium quantity rises

demand decreases and supply increases

equilibrium price falls and the change in quantity is indeterminate

on supply and demand curve, quantity demanded is illustrated on the ____ axis, while price is illustrated on the ____ axis

horizontal, vertical

supply curve is upward-sloping because as price ____, the producer will be willing to supply ____ of the product.

increases; more

for every good or service, the quantities demanded by individual consumers at every price are added together to compute ___ for a good or service

market demand

____ ensures that the right amount of a particular product gets produced

market mechanism

excess of quantity demanded over quantity supplied at a given price

market shortage

the equilibrium price where the quantity demanded equals the quantity supplied is otherwise known as the ____

market-clearing price

a demand ____ organizes the relationship between price and quantity in a tabular format, whereas the demand ____ is a graphical representation of this relationship

schedule; curve

change in supply

shifts of the supply curve due to changes in technology, factor costs, other goods, taxes and subsidies, or expectations

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

supply

when quantity supplied exceeds quantity demanded

surplus

supply and demand increase

the change in equilibrium price is indeterminate and equilibrium quantity rises

shows the quantities of a product that will be purchased at various possible prices

the demand curve