chapter 4

Question 1

who determines the demand in a market?

Answer 1

Buyers

Question 2

who determines the supply?

Answer 2

sellers

Question 3

what is a competitive market?

Answer 3

a market with many buyers and seller who have an impact on market price

Question 4

what is a monoply?

Answer 4

there is only one seller who can determine the market price.

note: governments don’t like this because they cant control the price and said company has to much market power.

Question 5

what is price taking?

Answer 5

it’s when there is so much of one good and service the price is determined by the seller

superstore controls the price of bananas because there is an abundance.

Question 6

law of demand

Answer 6

there is a negative relationship, one goes up the other down and vice versa

Question 7

quantity demanded?

Answer 7

the amount of a good buyers are willing and able to purchase

Question 8

demand schedule ?

Answer 8

a table that shows the price of a good and quantity demanded.

Question 9

demand curve?

Answer 9

a graph that shows the price of a good and quantity demanded.

Question 10

what is a market demand?

Answer 10

the sum of all the individual
demands for a particular good or service

Question 11

increase in demand-on-demand curve

Answer 11

right

Question 12

decrease in demand, on demand curve?

Answer 12

left

Question 13

normal good:

Answer 13

when someone makes more income they want to buy more.
ex. cars, clothes and tech

Question 14

inferior good?

Answer 14

when someone make more, they want to buy less of a good.
Ex: Mcdonalds and bus tickets.

Question 15

substitutes

Answer 15

if the price of on good goes up individuals will substitute for another.
ex: cars Toyota vs Honda

Question 16

compliments:

Answer 16

the use of two goods together.
if printer price goes up, demand goes down and ink prices decrease.

Question 17

the causes of shifts in demand curve?

Answer 17

taste
expectation
number of buyers or sellers

Question 18

a change in price on the demand curve?

Answer 18

movement along the curve, neither in or out. we stay on the curve going up or down.

Question 19

quantity supplied

Answer 19

the amount of a good sellers is willing to sell.

Question 20

supply law

Answer 20

positively related.
can be displayed on a graph or table. if price rises, we want to supply more, if a price drops we want to supply less.

Question 21

market supply

Answer 21

the sum of supplies of all sellers.

Question 22

supply curve shifts

Answer 22

left, is a change that reduces quantity supplied. it’s called a decrease in supply
right, is a change the increases quantity supplied. its called a increase in supply.

Question 23

the causes of shifts in a supply cure

Answer 23

input prices
technology
expectations
number of buyers