Microeconomics Quiz 2
If the consumers believe that an item will not be available in the futures, then demand will shift ______ and the equilibrium quantity will ______.
right; rise
The law of supply states that as a price ______, the quantity ______.
rises; supplied rises
When demand increases, the demand curve:
shifts to the right
According to the law of demand, people buy more of a good when:
the price falls
Another name for a market economy is:
the price system
a shift in the demand curve by a change in
one of the determinants of demand
A Market exists when:
people exchange money for goods and services
People's willingness to pay for umbrellas is most likely ________ on a _______ day.
Higher; rainy
Which circumstance will cause a movement down along a demand curve?
a decrease in the product price
There is an _______ relationship between price and quantity demanded.
Negative
On a demand curve:
Price is on the vertical axis and quantity demanded is on the horizontal axis
Demand refers to:
The goods and services buyers are willing and able to purchase at various prices in a given period of time.
The main role of a market is to:
allocate resources
Which factor would shift the demand curve for gasoline to the right?
an increase in rational income
Prices typically contain useful information:
both for buyers and for sellers
If there is a combined "increase in demand" and "decrease in supply", equipment;inbriu, price will_______ and equilibrium , quantity will______
increase; be indeterminate
An item whose demand rises as people's incomes fall is know as:
inferior goods
Which item is not a determinant of supply?
national income
If the demand for iPhones rises as incomes increase, then the iPhone is an ______ good
normal
A shift in the demand curve is not caused by
technology
A good is a normal good if:
the demand curve shifts outward if income increases
