econ 2301 ch 4
The five major factors that shift the demand curve when they change are:
1. Tastes and preferences 2. Income and wealth 3. Availability and prices of related goods 4. Number and scale of buyers 5. Buyers' beliefs about the future
When one of the five major factors changes, causing an increase in demand, the demand curve shifts ▼ upward rightward up and to the right .
rightward
When one of the four major factors changes, causing an increase in supply, the supply curve shifts ▼ up and to the right rightward upward .
rightward
The supply curve shifts when these four major factors change:
1. Prices of inputs used to produce a good 2. Technology used to produce a good 3. Number and scale of sellers 4. Sellers' beliefs about the future
Which of the following is not one of the four major factors that shifts the supply curve when it changes? A. The scale of sellers B. Prices of inputs used in production C. The income of consumers D. Sellers' beliefs about the future
C. The Income of Consumers
Market demand is derived by __________. A. adding up both the prices each buyer pays and the quantities that each buyer demands. B. dividing each buyer's demand by the total number of consumers in the market. C. fixing the quantity and adding up the prices that each buyer pays. D. fixing the price and adding up the quantities that each buyer demands.
D. fixing the price and adding up the quantities that each buyer demands.
In the context of the firm's supply curve, as the firm produces more of a good, the cost of producing each additional unit ▼ increases decreases stays the same . This implies that the marginal cost of producing a good ▼ does not change decreases increases as it makes more of that good.
increases;increases
The relationship that exists between these two variables can be described as ▼
negatively related
in a perfectly competitive market do sellers all sell different things?
no all sellers all sell an identical good or service
Which of the following is not one of the five major factors that shifts the demand curve when it changes? A. The price of the good itself B. Income and wealth C. The price of substitute goods. D. The number of buyers
A. The price of the good itself
The firm's supply curve represents ___________. A. the minimum price buyers are willing to pay to buy an extra unit of a good. B. the maximum price buyers are willing to pay to buy an extra unit of a good. C. the maximum price the seller is willing to accept to sell an extra unit of a good. D. the minimum price the seller is willing to accept to sell an extra unit of a good.
D. the minimum price the seller is willing to accept to sell an extra unit of a good.
Does the shape of the market demand curve differ from the shape of an individual demand curve? A. Yes, individual demand curves tend to be upward-sloping, while market demand curves are horizontal. B. No, they both tend to be upward-sloping curves. C. Yes, individual demand curves tend to be downward-sloping, while market demand curves are upward-sloping. D. No, they both tend to be downward-sloping curves.
D. No, they both tend to be downward-sloping curves.
market
a group of economic agents who are trading a good or service, and the rules and arrangements for trading
In a perfectly competitive market, if one seller chooses to charge a price for its good that is slightly higher than the market price, then it will _________. A. see no change in its number of customers. B. lose all or almost all of its customers. C. see a small decrease in its number of customers. D. All of the above are equally likely.
b
the demand curve plots the relationship between the market price and the quantity of goods demanded by _________?
buyers
In a perfectly competitive market, sellers _________ and buyers _________. A. are able to charge more than the market price; are able to pay less than the market price. B. are able to charge more than the market price; cannot pay less than the market price. C. cannot charge more than the market price; are able to pay less than the market price. D. cannot charge more than the market price; cannot pay less than the market price.
d
The Law of Demand states that as the price of a good increases, ceteris paribus, the __________________________ decreases. This can be shown graphically with a downward-sloping demand curve or numerically in a table using a demand schedule .
quantity demanded
The Law of Supply states that as the price of a good increases, ceteris paribus, the ▼ of that good increases. This can be shown graphically with ▼ supply curve or numerically in a table using a ▼ The relationship that exists between these two variables can be described as ▼ .
quantity supplied; an upward-sloping-supply schedule positively
prices act as a ___________ between buyers and sellers
selection device
the supply curve plots the relationship between the market price and the quantity of goods demanded by _________?
sellers
Coffee and tea are likely ▼ because an increase in the price of coffee ▼ decreases does not change increases the demand for tea.
substitutes; increases
market price
when all sellers and buyers face the same price
