supply and demand econ final
when there is a shortage what should be done
increase price
the law of demand states that there is what type of relationship between price and quantity demanded
inverse
A table that lists the quantity of a good that he single person will buy each price in a market
demand schedule
when each additional unit of a product gives you less utility it is known as what
diminishing marginal utility
The law of supply states that there is what type of relationship between price and quantity supplied
direct
The demand curve slopes in which direction
down
if the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right
false
refer to the above diagram. the equilibrium price and quantity in this market will be
$1.00 and 200
when college students leave town for the summer, the demand for meals at the local restaurants declines. this results in
A decrease in equilibrium price and quantity
which of the above diagrams illustrates the effect of a decrease in incomes upon the market for second hand clothing
B only
A firms supply curve is upsloping because
Beyond some point the production costs of additional units of output will rise
Federal minimum wage law demonstrates
Government intervention
which of the above diagrams illustrates the fact of a government tool subsidy on the market for AIDS research
C only
what do various points on a demand curve represent
Change in quantity
Goods that are bought and used together are
Complementary goods
If the cost of computer components falls, then
The supply curve for computers shifts to the right
which of the following will not cause the demand for product K to change
a change in the price of K
which of the following would not shift the demand curve for beef
a reduction in the price of cattle feed
refer to the above diagram. A price of $20 in this market will result in
a shortage of 100 units
part of the reason that LeBron James earns millions of dollars each year well schoolteachers mayor and $30,000 is because
all of the above
The law of supply states
as price increases, supply increases
The supply curve is upward sloping because
as the price increases, suppliers can earn higher levels of profit or justify higher marginal cost to produce more
All of the following shift the demand curve for automobiles to the right except
brand new automobile dealership opens in town
an increase in the price of a product will reduce the amount of it purchased because
consumers will substitute other products for the one who's Price has risen
the ideal price level is known as what
market equilibrium
A surplus happens when
prices are too high relative to consumer demand
if the price of K declines, the demand curve for the complementary product J Will
shift to the left
which of the following is not a component of demand
surplus
What happens in the market for airline travel when the price of traveling by rail decreases
the demand curve shifts left
if a sin tax is placed on sales of alcohol,
the demand curve shifts to the left
when a price ceiling is imposed above the equilibrium price,
the equilibrium outcome prevails
a surplus will occur for a product when the price is
too hihh
if the demand curve shifts to the right, then we move up and to the right along on our supply curve
true
The supply curve always slopes in what direction
up
when graphing supply and demand, Price is always on which axis
vertical