Demand, Supply, and Consumer Choice

downward sloping

the law of demand if illustrated by a demand curve that is

a greater quantity supplied than quantity demanded

a price floor above equilibrium will result in

quantity demanded is greater than quantity supplied

a shortage in a market will occur when

quantity supplied to decrease

according to the law of supply, if the price of a produce decreases, one would expect

the supply will decrease, the demand will increase, and the equilibrium price will rise

after a celebrity is seen sporting a wearable fitness device, everyone decides to try one. Meanwhile, the price of palladium, an important component in electronics, increases. Based on this information, what can we expect in the market of wearable fitness devices

a leftward shift of the supply curve for that good or service

an increase in the cost of any factor of production for a good or service will result in

a country and western dance trend spreads across the country

ceteris paribus, consumers will wish Toby more cowboy boots at each and every price if

upward pressuring on pricing

given a price below equilibrium for any given good or service, we would expect

the supply of bacon would increase, the demand for bacon would decrease, and the price of bacon would fall

ham and bacon both come from pigs (from different parts of the pig). If the rice of ham increases at the same time as the global population shrinks, what would happen to the market for bacon

people moving into the city will be unable to find an apartment

if a majority city imposes a price ceiling on rent payments for apartments. what will most likely occur

the change in equilibrium price will be unknown and the equilibrium quantity will decrease

if the demand for pianos decreases at the same time as the supply of pianos decreases, what will happen to equilibrium and price and quantity

the equilibrium will increase and the change in equilibrium quantity is unknown

if the demand for sweaters increases at the same time as the supply decreases, what will happen to the equilibrium price and quantity

there is a surplus of the product

if the quantity supplied is greater than the quantity demanded, then

the change in equilibrium price will be unknown and the equilibrium quantity will increase

if the supply of coffee increases at the same time as the demand for coffee increases, what will happen to the equilibrium price and quantity of coffee

decrease

in booming economic times we would expect demand for inferior goods to

price ceilings go below equilibrium and result in a shortage

price ceilings go ____ equilibrium and result in a ____

Price floors go above equilibrium and result in a surplus

price floors go ___ equilibrium and result in a _____

quantity demanded of movie tickets to decrease

the price of a movie ticket increases from 12 to 15 dollars. We can expect

1. Preferences or consumer taste 2. Number of Consumers in the market 3. Consumer Information (smoking or cholesterol) 4. Expectations of future prices (consumer will buy more now if prices are expected to rise in future (gas) 5. Price of related goods - substitutes and complements

what changes demand (5 shifters of demand)

a change in the price of a good or service

what changes quantity demanded (moving along the curve)

a change in the price of a good or service

what changes quantity supplied`

1. Technology 2. Number of firms in the market 3. Change in input price of land, labor, and capital - price of goods used in production 4. Expectations of future prices - firms will sell less raw if prices are expected to rise, farmers, may store goods to sell next year 5. Government taxes subsidies and regulations

what changes supply (5 shifters of supply)

when the demand is higher then the supply

what is a shortage

when the supply is higher then the demand

what is a surplus

they have an inverse relationship: when price goes up quantity goes down when price goes down quantity goes up

what is the relationship between price and quantity for the law of demand

they have an direct correlation: when price goes up quantity goes up when price goes goes down quantity goes down

what is the relationship between price and quantity for the law of supply

Inverse relationship: If income increases then demand for inferior goods decreases If income decreases then demand for inferior goods decreases

what is the relationship of income and demand for inferior goods

Direct relationship: If income increases then demand for normal goods will increase If income decreases then demand for normal goods will decrease

what is the relationship of income and demand for normal goods

Inverse relationship: If price of good increases the demand for its complement will decrease if price of good decreases the demand for its complement will increase

what is the relationship of price and demand of complements

Direct relationship: If price of good increases demand for its substitute increases if price of good decreases demand for its substitute decreases

what is the relationship of price and demand of substitutes

shortage

when quantity demanded is greater than quantity supplied, we would expect a(n)

price will increase and quantity is indeterminate

when the demand curve shifts to the right and the supply curve shits to the left, we can expect the following outcome

shift of the supply curve to the right

when the supply of a good or service increases at each and every price, we represent this on a graph by a(n)

designer jeans

which of the following best fits the label of a normal good

it's downward slope represents an inverse relationship between price and quantity

which of the following is true regarding a demand curve

prices of new generation smart phones increase in 20151

which of the following news scenarios would trigger a decrease in the quantity demanded for the stated technology

decreased availability of raw materials used to produce that good or service

which of the following scenario will shift the supply curve for a good or service to the left

an increase in the price of soccer balls because soccer balls are a complement to soccer cleats and causes the curve to shift whereas an increase the price of soccer cleats causes a move along the curve instead of a shift of the curve

which of the following things would cause a decrease in the demand for soccer cleats and why

an increase in the price of cotton

which of the following things would cause a decrease in the supply of cotton t-shirts

a recession ends and the average disposable income rises

which of the following things would cause an increase in the demand (i.e., shift in the curve for coffee)

an increase in the price of cheese (an input for cheeseburgers)

which of the following would cause the equilibrium price of cheeseburgers to increase and the equilibrium quantity of cheeseburgers to decrease

per unit excise tax increase

which of the following would have the same generalized effect as a supply shift left

II only

which of the following would increase the quantity supplied of a product: I. Technological improvements II. Increase in price for the product III. Decrease in business taxes

1. Diminishing marginal utility 2. Substitute effect 3. Income effect

why is demand downward sloping

At higher prices, profit seeking firms have an incentive to produce more the more they make the more they will get

why is supply upward sloping