Chapter 3 (micro)

Question 1

Demand

Answer 1

the quantity of products consumers will purchase at various prices during a specific time.

Question 2

law of demand

Answer 2

inverse relationship: one goes up, the other goes down. Price is the most important factor.

Question 3

change in quantity demand

Answer 3

shifts points along the curve due to changes in product price.

Question 4

complimentary goods

Answer 4

A complementary good is a product or service that provides value to another product or service. In other words, they are two things that the customer utilises in conjunction with one another. Cereal and milk, for example, or a DVD and a DVD player.

Question 5

substitue

Answer 5

dealing with the good/price change and product moves together

Question 6

changes in supply

Answer 6

shifts curve by determinates

Question 7

change in quantity supplied

Answer 7

moves along curve

Question 8

determinates of supply

Answer 8

price of resources, technology, taxes and subsidies, prices of related goods, expectations, number of sellers