macro ch 3 (Autosaved)

Question 1

represented by the entire supply curve to shift. When Supply increases, the entire supply curve shifts rightward. When Supply declines, the entire Supply curve shifts leftward. 6 general determinants: technology, input prices, # of sellers, prices of other goods in production, expected future prices, taxes, subsidies, and govt restrictions

Answer 1

change in supply

Question 2

represented by a movement from one point to another point on the same demand curve, and it is determined by price variations. And, the determinant of quantity demanded is the own price of the good at the present time

Answer 2

change in quantity demanded

Question 3

he price falls to equilibrium price when there is a ______ in the market

Answer 3

surplus

Question 4

the price rises to equilibrium price when there is a_______

Answer 4

shortage

Question 5

A ______ exists if Q-demanded is greater than Q-supplied.

Answer 5

shortage

Question 6

A _____ exists if Q-supplied is greater than Q-demanded.

Answer 6

surplus

Question 7

The quantity that corresponds to the equilibrium price is called

Answer 7

equilibrium quantity.

Question 8

The price at which Quantity demanded equals Quantity supplied is

Answer 8

equilibrium Price or market-clearing Price.

Question 9

The point at which supply curve crosses demand curve is the

Answer 9

market equilibrium point.

Question 10

two good that satisfy similar needs or desires

Answer 10

substitutes

Question 11

for a given time period the marginal utility or satisfaction gained by consuming equal successive units ofa good will decline as the amount consumed increases

Answer 11

law of diminishing marginal utility

Question 12

the numerical tabulation of the quantity demanded of a good at different prices. A demand scehdule is the numerical representation of the law of demand

Answer 12

demand schedule

Question 13

for a given time period the marginal utility or satisfaction gained by consuming equal successive units ofa good will decline as the amount consumed increases

Answer 13

law of diminishing marginal utility

Question 14

the price of a good for example if the price of oranges is $1 this is its own price

Answer 14

own price

Question 15

a good for which demand rises (falls) as income rises (falls)

Answer 15

normal good

Question 16

a good for which demand falls(rises) as income rises (falls)

Answer 16

inferior good

Question 17

a good for which dmenad does not change as income rises or falls

Answer 17

neutral good

Question 18

any place people come together to trade

Answer 18

market

Question 19

the graphical representation of the law of demand

Answer 19

demand curve

Question 20

as the price of a good rises the quantity demanded of the good falls and as the price of a good falls, the quantity dmenadned of the good rises

Answer 20

law of demand

Question 21

the numerical tabulation of the quantity demanded of a good at different prices. A demand schedule is the numerical representatiin of the law of demand

Answer 21

demand schedule

Question 22

represented by the entire demand curve to shift. When demand increases, curve shifts right, when decrease shift left, has 5 determinants: preference or taste, income, # of buyers, prices of related goods, expected future prices,

Answer 22

change in demand

Question 23

the willingness and ability of buyers to purchase different quantities of a good at different prices during a specific time period

Answer 23

demand

Question 24

captures the behavior of sellers (producers, distributors, retailers, whole-sellers, businesses, companies, etc.) that want to maximize their economic profits.

Answer 24

supply

Question 25

represented by a movement from one point to another point on the same supply curve, and it is determined by price variations.

Answer 25

change in quantity supplied