Econ Chapter 3
Which of the following serve as complementary goods or services to your economics course?
A note taking device and learn smart
Which of the following describes the law of demand?
All other things being equal, as price decreases, quantity demanded increases All other things being equal, as price increases, quantity demanded decreases
A price _________ is the maximum legal price a seller may charge for a product or service.
Ceiling
Which of the following are determinants of demand?
Changes in income number of buyers prices of related goods consumer tastes consumer expectations
Which of the following consists of a large number of independently acting buyers and sellers?
Competitive Market
A buyer's intentions or plans in regard to the purchase of a product is known as
Demand
A shortage results from an excess of quantity ________.
Demand
The number of buyers is a determinant of market ___.
Demand
Consumers experience _______ marginal utility the more they consume of a particular good or service.
Diminishing
Price and quantity supplied have a(n) ________ relationship
Direct
A price at or above the price floor is illegal.
False
True or False: If demand for a good increases when consumer incomes rise, then the good is considered Inferior.
False
True or false: As more firms enter an industry, the supply curve shifts to the left.
False
_____ resource prices raise production costs and assuming a fixed product price ______ profits
Higher/Reduce
Which of the following is a determinant of demand?
Income
Indicates that a lower price increases the purchasing power of a buyer's income, enabling the buyer to purchase more of that product than before.
Income Effect
A surge in demand while holding supply constant results in an _________ in both equilibrium price and quantity.
Increase
The law of demand describes a(n) ___________ relationship between the price of a good or serive and the quantity demanded of that good or service.
Inverse
The income effect is best described as __________ increasing the purchasing power of income, enabling consumers to purchase_______ of a product and vice versa.
Lower Prices More
The added cost of producing one more unit of output is called ________ cost.
Marginal
which of the following are substitutes?
Pepsi and Coke
All of the following are the determinants of demand, except:
Price of substitutes in production
When the government provides financial assistance for the production of a good which lowers producers'costs and increases supply, it is called a _.
Subsidy
Which of the following type of goods affect the demand for a product due to a change in their price?
Substitute/Complimentary goods
Substitution in production is a determinant of ______
Supply
An increase in ________ while holding ________ constant results in a decrease in equilibrium price, but an increase in equilibrium quantity.
Supply, Demand
The number of buyers in a market is a determinant of demand.
True
The price of resources used in the production process help determine the costs of production incurred by firms.
True
______ in supply while holding demand constant results in an increase in equilibrium price, but a decrease in equilibrium quantity.
decrease & shift leftward
A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them.
market
Buyers and sellers are brought together in a ___________.
market
a legal maximum price that may be charged for a particular good or service
price ceiling
The productions of a good or service in the least costly way is known as ________ efficiency.
productive
Which of the following are determinants of supply?
resource prices technology taxes and subsidies
the law of supply states that as price __________, the quantity supplied rises, as price _______, the quantity supplied falls.
rise, lower
Market _______ is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each possible priceduring a specific period.
supply
Producer expectations of future prices are determinant of ____________.
supply
The interaction of buyers and sellers determines equilibrium price and equilibrium
supply
Which of the following are determinants of supply?
taxes and subsidies