C3:Worksheet

Under the law of supply, any decrease in price will cause __________ in quantity supplied

A decrease

Which of the following would shift the demand curve for autos to the right

A fall of price of auto insurance

When quantity supplied equals quantity demanded' there is

A market-clearing price (equilibrium price)

We can find the market demand for pears by:

Adding up all the individual demand curves for pears

Which of the following would NOT cause a shift in the supply curve for a good

An increase in demand for that good

Which of the following will NOT shift the demand curve for televisions

An increase in the price of televisions

In economics, the best demand for a good, refers to the amount of the good people:

Are willing to buy at various prices

Which of the following is TRUE about the market equilibrium

As the price increases, the quantity demanded decreases and the quantity supplied increases

If more people enter medical school, we can expect

The supply of doctors to increase

The price of a good will rise when

There is a shortage of the good

A decrease in quantity demanded is given by a(n)

Upward movement to the left along the demand curve

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

When non price determinants, like income and the number of buyers, are unchanged.

According to the law of supply, there is a direct relationship between quantity supplied and

The price of the good

The law of demand indicates that as the price of a good increases:

Buyers buy less of it

The MOST important characteristics of the equilibrium price is that it

Clears the market

The "other things being equal" clause in the law of demand does NOT allow which of the following factors to change

Consumer income The prices of other goods Consumer tastes and preference

Which of the following is most likely to shift the demand curve for electricity to the left

Consumers become more energy conscious

Market equilibrium is

Defined as the condition in which there is neither a shortage or surplus Defined as the condition under which the separately formulated plans of buyer and sellers exactly mesh when tested in the market Represented graphically by the intersection if the supply and demand curves

If X is a normal good, a rise in consumer income will shift the:

Demand curve for X to the right

When economists say the demand for a product has increased, they mean the:

Demand curve has shifted to the right

The law of demand is graphically demonstrated by a(n):

Downward-sloping demand curve

Which of the following is MOST likely to increase the supply of corn

Farmers that grow soybeans can also grow corn, and the price of soybean drops by 75

Which of the following g will cause the demand curve for a good to shift to the right?

Increase in the price of a substitute good

The law of demand refers to the

Inverse relationship between the price of a good and the willingness of consumers to buy it.

An increase in the quantity demanded of a good is MOST often due to:

Lower prices

All of the following apply to the description of a market in equilibrium EXCEPT

The price of the good is falling

If a shortage of a product currently exists in the market

The quantity demanded exceeds the quantity supply end at the market

When economists say the quantity supplied of a product has increased, they men the

Price of the product has risen, and consequently, suppliers are producing more of it

A movement along a demand curve is called a change in:

Quantity demanded

When the price of a good is below its equilibrium leave, a

Shortage puts upward pressure on the price

The use of a price system eliminates

Shortages and surpluses

Consumers buy less of a good as it's price increases because:

Substitute goods ate now relatively cheaper

A technological improvement in producing a good A would be a shift in the

Supply curve for A to the right

In a market, competitive forces guarantee that any price other than equilibrium price is

Temporary

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then

The market is in equilibrium