M3

Question 1

a process of buyers and sellers exchanging
goods and services.

Answer 1

MARKET

Question 3

common example of markets:

Answer 3

financial market
farmers market
trade fair
over the counter
online market
auction

Question 4

a group determine the demand

Answer 4

buyers

Question 5

a group determine the supply of the product,

Answer 5

sellers

Question 6

Types of Market Structure

Answer 6

Competitive
monopolistic
oligopoly
pure monopoly

Question 7

market structure defined by a large number of small firms competing against each other. Products are identical to competitors’ products,
and there are no significant barriers to entering and exiting the market.

Answer 7

competitive / pure competition

Question 8

Firms sell
similar but highly differentiated products.

Answer 8

monopolistic

Question 9

dominated by a several firms, resulting in limited
competition. They can collaborate with or compete against each other to use their
collective market power to drive up prices and earn more profit.

Answer 9

oligopoly

Question 10

there is only one firm or seller that dictates the
price and supply level of goods and services.

Answer 10

pure monopoly

Question 11

other factors being constant price and
quantity demand of any good and service are inversely (negatively) related to each other.

Answer 11

law of demand

Question 12

people will buy more at lower prices and buy less at higher prices, if other things remaining the same.

Answer 12

law of demand

Question 13

shows the relationship between
the price of the commodity and the quantity demanded.

Answer 13

individual demand schedule

Question 14

describes the demand for a given product and
who wants to purchase it. This is determined by how willing consumers are to spend a
certain price on a particular good or service.

Answer 14

market demand curve

Question 15

the sum of
all individual demands for a particular good or service. The horizontal summing of the
demand curves of many individuals is called

Answer 15

market demand curve

Question 16

a tabulation of the quantity of a good
that all consumers in a market will purchase at a given price.

Answer 16

market demand schedule

Question 17

drawn under the assumption that all other
things are held constant, except the price of the good.

Answer 17

demand curve

Question 18

The other variables that influence
the demand curve are called

Answer 18

determinants of demmand

Question 19

a change in these other factors of market lead to

Answer 19

shift in demand curve

Question 20

two ways the demand curve can shift

Answer 20

rightward shift
leftward shift

Question 21

There is an increase in demand. At any given price, consumers
demand a larger quantity of the good than before.

Answer 21

rightward

Question 22

There is a decrease in demand. At any given price, consumers
demand a smaller quantity of the good than before.

Answer 22

leftward shift

Question 23

Determinants of Demand: Factors that shift the demand curve

Answer 23

1. Prices of related good and service (substitutes and complements)
2. Income (Normal and Inferior Goods)
3. Number of buyers
4. Tastes
5. Expectations

Question 24

Producer will decide how much/many to produce given the price.

Answer 24

market supply

Question 25

the higher the price of the good, the greater the quantity supplied, and the lower the price of the good, the smaller the quantity supplied, ceteris paribus.

Answer 25

law of supply

Question 26

what do you call the other term for law of supply

Answer 26

ceteris paribus

Question 27

states that other factors remaining constant, price and quantity supplied of a good are directly related to each other.

Answer 27

law of supply

Question 28

The combinations of price and quantity supplied were plotted and joined to create the

Answer 28

indivudal supply curve

Question 29

the sum of the supplies of all sellers

Answer 29

market supply

Question 30

refers to the horizontal summation of the supply curves for all the individual producers in the market.

Answer 30

market supply curve

Question 31

A change in any other factor that can affect seller behavior

Answer 31

shifts in supply curve

Question 32

what do you call if there is a shift int the entire supply curve

Answer 32

change in supply

Question 33

determinants of supply

Answer 33

seller's input price price of related products expectations number of sellers technology

Question 34

An increase in supply when the curve shifts __________: At any given price, producers supply a larger quantity of the good than before.

Answer 34

right ward shift

Question 35

A decrease in supply, there is a __________ in the supply curve: At any given price, producers supply a smaller quantity of the good than before.

Answer 35

leftward shift

Question 36

exists when the price is above equilibrium, which encourages sellers to lower their prices to eliminate the _______.

Answer 36

surplus

Question 37

will exist at any price below equilibrium, which leads to the price of the commodity increasing.

Answer 37

shortage