Chapter 3 (worksheet)
A(n) _____ is an institution that brings buyers and sellers together so they can interact and transact with each other
Market
In moving along a supply curve, which of the following is not held constant?
Market price of the good
A technological advance causes...
The supply curve to shift to the right
If the price of the shoes is $40/pair, The quantity supplied will be playing pairs of shoes.
20
The table shows the demand of three individuals in a market. Assuming these are the only buyers, what is the total market demand if the price is $20?
5 units
"Supply" refers to the...
Amount of a product sellers are willing and able to sell at various prices
A shift to the right of the demand curve could be caused by....
An increase in income
If the local pizzeria has only two buyers, Jake and Sue, for its calzones, what is the market demand for calzones at each of the prices listed? Qj is the quantity demanded at each price below by Jake, and Qs is the quantity demanded at each price below by Sue.
6,4,2,1
A demand curve represents an...
Indirect relationship between price and quantity demanded
According to the figure, the market quantity demanded at $20 is...
10
In the table, the equilibrium price is $_____, and the equilibrium output is $_____.
10 and 60
If the price of the shoes is $40/pair, the quantity demanded will be _____ pairs of shoes.
15
The shift of the supply curve from A to B is example of...
A change in supply
Hey shift to the right of the demand curve would be caused by anything except...
A decrease in the population
When one of the determinants of the demand changes, that will result in...
A shift of the demand curve
In the table, at a price of $5...
A shortage of 40 units occurs
In the table, at a price of $12...
A surplus of 20 units takes place
The basic proposition of the law of demand is that...
As the price of a good rises, less of it is demanded
The equation for the demand curve for bags of Doritos is P=6+(-1)•Q. Which of the following is the correct demand curve?
B
Ben likes carrots less today than he did yesterday. So...
Ben is now willing to pay less than before for carrots
Butter is a substitute for margarine. If the price of margarine increases, we would expect to see...
Both the price of butter and the quantity of butter traded rise
Which of the following graphs concerning hamburgers indicates an increase in the quantity demanded of hamburgers?
C
College classes in college textbooks are...
Complementary goods
An item who's demand rises as peoples incomes fall is known as a(n) _____ good.
Inferior
A factor that can share a demand curve to the left for an inferior good is a(n)...
Decrease in population
Which is the most likely effects of an increase in the price of computer software upon the market for laptop computers?
Decreased equilibrium price and decreased equilibrium quantity
Labor costs increase at General Foods serial plants, the supply _____, the quantity demanded _____, and the price _____.
Decreases, decreases, increases
A decrease in the quantity supplied of iPod is caused by a(n)...
Drop in the price of iPods
Is the surgeon general announced that wearing baseball caps will eleminate dandruff, then, ceteris paribus, the price of baseball caps would _____.
Increase
Consumers expect the price of milk to decrease shortly. What happens in the short run? The demand _____, the quantity demanded _____, and the price _____.
Increases, decreases, decreases
If more auto manufacturers start producing hybrid cars, the supply _____, the quantity demanded _____, and the price _____.
Increases, increases, decreases
There are more baby bloomers in the population then there are people already retired. Once the baby boomers start to retire, what happens to the market for retirement homes? The demand _____, the quantity demanded _____, and the price _____.
Increases, increases, increases
An increase in the supply of popcorn indicates that the producers of popcorn are willing to sell _____ at all prices, and the supply curve for the popcorn shifts _____.
More popcorn and rightward
A farmer who grows apples and pears expect the price of apples to increase how does the amount of apples he grows change? To supply _____, the quantity supplied _____, and the price _____. (No answer)
No answer
A market exists when...
People exchange money for goods and services
In a market economy, there is a(n) _____ relationship between price and quantity of supplied.
Positive
What allows sellers to determine what goods to sell, helps buyers find possible substitute goods, and contains information useful for all people involved in a transaction?
Prices
What gives buyers and easy means of comparing against that my substitute for each other?
Prices
What signals entrepreneurs to enter or leave a market?
Prices
What signals potential employees to enter or leave the labor market as a supplier for a particular job?
Prices
The market economy is often called the Price system because....
Prices provide information for both buyers and sellers
The law of supply says...
Producers are willing to offer more for sale if the price increases
Determinants of supply include...
Production technology, cost of resources, expectations
If the price of shoes is $60/pair, the _____ Will be 10 pairs of shoes.
Quantity demanded
If the price of shoes is $60/ pair, the _____ will be 30 pairs of shoes.
Quantity supplied
According to the law of supply, as price increases,...
Quantity supplied will rise
A graphical representation of how much a seller would be willing and able to bring to the market at various prices is known as the...
Supply curve
The state of Florida was experiencing a period of drought. The farmers were anticipating in increase in the cost for growing oranges. This would have caused a decrease in the....
Supply of oranges
A market will always....
Tend towards equilibrium
A decrease in demand means that...
The demand curve has shifted to the left
Gasoline is produced from crude oil. All things equal, if the supply of crude oil falls...
The equilibrium price of gasoline will increase and the equilibrium quantity will decrease
When economists refer to a "market demand" curve, we know that it represents...
The horizontal summation of individual demand curves
The graph represents...
The law of demand
An increase in price will lead to an increase in quantity supplied. This statement is...
The law of supply
The graph represents...
The law of supply
According to the law of supply, individuals will supply more of a good when...
The price rises
In citing the certeris paribus condition for the law of demand, the only two variables that change are...
The product's price and the quantity demanded for the product
"Demand" refers to...
The products buyers are willing and able to purchase at various prices in a given period of time
The concept of command is...
The quantities of a good or a service that people will buy at various prices
If the price of HDTVs falls...
The quantity supplied of HDTVs declines
Better technology lowers the cost of producing computers so that supply _____, quantity supplied _____, and price _____.
increases, increases, decreases