Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Demand & Supply > Flashcards

Demand & Supply Flashcards

1
Q

The forces of ______ and ______ establish the price that best serves both producers and consumers

A

supply, demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

______ is the desire to have a good or service and the ability to pay for it

A

Demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

_____ is one of the major factors that influences demand

A

Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The ___ __ ______ states that when the price of a good or service falls, consumers will buy more of it

A

law of demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

As the price of a good or service _________, consumers usually buy less of it

A

increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Quantity demanded and price have an _______ ____________

A

inverse relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A ______ ________ is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each price in the market

A

demand schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A ______ ______ ________ shows how much of a good or service all consumers are willing and able to buy at each price in a market

A

market demand schedule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The ____-____ column of the table lists various prices of a good/service

A

left-hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The _____-____ column shows the quantity demanded of the good/service at each price

A

right-hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A ______ _____ is a graph that shows how much of a good or service an individual will buy at each price

A

demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The ______ _____ should slope downward from the upper left to lower right

A

demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A ______ ______ _____ shows the data found in the market demand schedule

A

market demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A ______ ______ _____ shows the sum of the information on the individual demand curves of all consumers in a market

A

market demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The vertical axis displays ______ and the horizontal axis displays __________ ________

A

prices, quantities demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The ___ __ ___________ ________ _______ states that the marginal benefit of using each additional unit of a product during a given period will decline

A

law of diminishing marginal utility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Recall that _______ is the satisfaction gained from the use of a good or service

A

utility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Economists have identified two patterns of behavior as causes: the ______ effect and the ____________ effect

A

income, substitution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The ______ ______ is the term used for a change in the amount of a product that a consumer will buy because purchasing power of his/her income changes - you feel richer b/c you save money

A

income effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The ____________ ______ is the pattern of behavior that occurs when consumers react to a change in the price of a good or service by buying a substitute product

A

substitution effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

A change in the amount of a product that consumers will buy because of a change in the _____ is called a change in the quantity demanded

A

price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Each change in ________ ________ is shown by a new point on the demand curve

A

quantity demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Change in demand is also called a _____ in demand because it actually shifts the position of the demand curve

A

shift

24
Q

Six factors can cause a change in demand:

A

income, market size, consumer tastes, consumer expectations, substitute goods, and complementary goods

25
Q

Changes in income also affect ______ ______ ______

A

market demand curves

26
Q

When the _______ of most consumers in a market rise or fall, the total demand in that market also usually rises or falls

A

incomes

27
Q

______ _____ or goods that consumers demand more of when their incomes rise

A

Normal goods

28
Q

________ _____ are goods that consumers demand less of when their incomes rise

A

Inferior goods

29
Q

Used books and generic food products are

A

Inferior goods

30
Q

___________ has a strong influence on consumer tastes

A

Advertising

31
Q

Your expectations for the future can affect your ______ ______ today

A

buying habits

32
Q

Goods and services that can be used in place of other goods and services to satisfy consumer wants are called ___________

A

substitutes

33
Q

Demand for the substitute will ________ while demand for the original item _________

A

increase, decreases

34
Q

___________ can be used in place of each other

A

Substitutes

35
Q

When the use of one product increases the use of another product, the two products are called ___________

A

complements

36
Q

In contrast to substitutes, ___________ are goods or services that work in tandem with each other

A

complements

37
Q

Economists use the term __________ __ ______ to describe how responsive consumers are to price changes in the marketplaces

A

elasticity of demand

38
Q

Demand is _______ when a change in price, either up or down, leads to a relatively larger change in the quantity demanded

A

elastic

39
Q

Demand is _________ when a change in price leads to a relatively smaller change in the quantity demanded

A

inelastic

40
Q

Elastic goods and services are often said to be _____ _________

A

price sensitive

41
Q

In the case of _________ ______, changes in price have little impact on the quantity demanded

A

inelastic demand

42
Q

Goods that have a larger number of substitutes fall into the _______ category

A

elastic

43
Q

Insulin is _________ because the quantity demanded remains relatively constant

A

inelastic

44
Q

The _________ demand curve has a steeper slope than the _______ demand curve does

A

inelastic, elastic

45
Q

Demand is said to be ____ _______ when the percentage change in price and quantity demanded are the same

A

unit elastic

46
Q

> 1

A

*Elastic Demand

47
Q

= 1

A
  • Unit Elastic
48
Q

< 1

A

*Inelastic Demand

49
Q

No good or service is ever really ____ _______

A

unit elastic

50
Q

Three things determine elasticity

A

Substitute goods or services
Proportion of income
Necessities vs. Luxuries

51
Q

If there are no substitutes for a good or service, demand for it tends to be _________

A

inelastic

52
Q

The percentage of your income that you spend on a good or service is another factor that affects __________

A

elasticity

53
Q

Demand for products that cost little of your income tends to be _________

A

inelastic

54
Q

A _________ is something you must have, such as food or water

A

necessity

55
Q

The change in quantity demanded is smaller than the change in price, so demand is _________

A

inelastic

56
Q

A ______ is something that you desire but that is not essential to you life, such as a plasma television

A

luxury

57
Q

Demand for luxuries tends to be _______

A

elastic

Economics (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions