learning curve LC4
marginal; marginal
Your demand curve is your _____ benefit curve and your supply curve is your _____ cost curve.
brick-and-mortar store
A coffee shop is an example of a(n):
rise
A shortage causes price to _____.
demand; preferences
Advertising can be a shifter of the _____ curve and is considered a change in _____.
your favorite coffee mug
All of these are examples of a market EXCEPT:
prices of substitutes in consumption.
All of these are shifters of supply EXCEPT:
at a higher price level, companies have an incentive to produce more, creating a new equilibrium.
An increase in demand causes both price and quantity to go up because:
lower; rise
An increase in supply will cause equilibrium price to _____ and equilibrium quantity to _____.
a decrease in demand
Any change that leads consumers to buy a smaller quantity at each price is considered:
seller
As a worker in the labor market, what role do you play?
there is no tendency for change
At the equilibrium point:
When the quantity supplied equals the quantity demanded.
At what point is a market in equilibrium?
same; opposite
Demand shifts lead price and quantity to go in the _____ direction, and supply shifts lead price and quantity to go in the _____ direction.
Demand is high, so price is high.
Dr. Larson is a professor at a state university. He is known for being tough but fair in his grading, and rarely gives out A's on his assignments. Considering that Dr. Larson is on the supply side and his students are on the demand side, why is it so difficult to attain an A?
An upward-sloping supply curve
How do you summarize the behavior of many individual sellers?
The quantity supplied exceeds the quantity demanded
If prices are falling, what can be stated about the observed market?
a surplus
If the equilibrium price is $20 for a flu shot, what occurs if the price were $100 per flu shot if nothing has changed in the market?
seller
James goes to a concert at the amphitheater by his house. During the encore, the drummer throws one of his drum sticks into the crowd and James catches it. James doesn't have much interest in memorabilia, so he decides to list the drumstick on eBay. In the market for this band's memorabilia, James is a:
He is supplying the bank with his savings, which the bank will in turn lend out to other borrowers.
Krishan goes to a local bank to make a deposit in his savings account. While there, he considers the principles of economics that he has been learning at the university. He concludes that in this situation he is a supplier of credit. How is this so?
Quantity demanded exceeds quantity supplied, creating a shortage.
Lisa has a stand at the local farmer's market where she sells honey from her farm. Every week, Lisa sells out of honey while still having people waiting in line to buy some. What is happening in the market for Lisa's honey?
desires; price
Markets transform your _____ into a _____ you are willing to pay.
planned
Mrs. Johnson decides that she is going to create her own country. She determines that she will be in charge of all production matters because she knows how to do things more efficiently than anybody else. What kind of economy has Mrs. Johnson effectively created?
The marginal cost of producing e-books is lower than that of physical books.
Why did the advent of e-books cause an increase in supply in the publishing industry?
Raise the price of bagels.
Suppose you are a manager at a local coffee shop. You notice that every day by 8AM you are entirely sold out of bagels, but have at least 20 people ask for bagels later in the day. Which of the following decisions would result in the best outcome for your shop?
demanded; supplied
The equilibrium quantity occurs when the quantity _____ and quantity _____ are equal.
Increases supply
The input costs of a good decrease. What does this do to supply?
the equilibrium price.
The price at which the market is in equilibrium is:
The quantity supplied and demanded in equilibrium is:
The quantity supplied and demanded in equilibrium is:
perfectly competiitve markets
The supply and demand curves covered in the book so far are most appropriate for analyzing:
price increases; quantity decreases
What effect on price and quantity would a big decrease in supply and a small increase in demand have?
Expectations
What factor can be a shifter of BOTH supply and demand?
buyer
What role do you play in the market when purchasing a slice of pizza?
Price rises; quantity falls
When the quantity demanded is less than the quantity supplied, a(n) _____ occurs.
supplier
at a higher price level, companies have an incentive to produce more, creating a new equilibrium.
surplus
When the quantity demanded is less than the quantity supplied, a(n) _____ occurs.
discount
When there is a surplus in the market, stores will _____ the good until it reaches the equilibrium price.
Going out to dinner and ordering an appetizer
Which of these LEAST describes an example of bundling?
Are all demanders in the market as happy as they possibly could be with the change?
Which of these is NOT a question you should ask yourself when predicting real-world market outcomes?