Supply and demand

Question 1

Group of buyers/sellers of a particular product, good, or service.

Answer 1

Market

Question 2

Many buyers, and sellers. Negligible effect on price.

Answer 2

competitive market

Question 3

all goods are exactly the same in a

Answer 3

perfect market

Question 4

buyers/sellers are so numerous that no one can affect market price.

Answer 4

perfect market

Question 5

claim that quantity demanded of a good falls when price of a good rises

Answer 5

law of demand

Question 6

relationship between price of good and quantity demanded (how much willing to buy at diff prices)

Answer 6

demand schedule

Question 7

the sum of quantities demanded by all buyers at each price

Answer 7

market demand

Question 8

____ shows how price effects quantity demanded.

Answer 8

demand curve

Question 9

the demand for a normal good is ___ related to income.

Answer 9

positively

Question 10

demand for an inferior good is ____ related to income.

Answer 10

negatively

Question 11

2 goods are ____ if increase in price of one causes increase in demand for other

Answer 11

substitutes

Question 12

2 goods are ___ if increase in price of one causes fall in demand for other

Answer 12

complements

Question 14

the ____ _____ of a good is the amount sellers are willing and able to sell

Answer 14

quantity supplied

Question 15

claim that the quantity supplied of a good rises when price rises

Answer 15

law of supply

Question 17

supply curve

Answer 17

relationship between price and quantity supplied

Question 18

wages, and the price of raw materials

Answer 18

input prices

Question 19

when the quantity supplied = the quantity demanded

Answer 19

equilibrium price

Question 20

excess supply

Answer 20

surplus

Question 21

more supply than demand

Answer 21

surplus

Question 22

shortage

Answer 22

excess demand

Question 23

sellers ____ prices when facing shortages

Answer 23

raise

Question 24

shift in the s curve occurs when a non price determinant of supply changes

Answer 24

change in supply

Question 26

change in demand

Answer 26

shift in d curve

Question 27

good way to organize economic activity

Answer 27

markets

Question 28

if market price is above equilibrium

Answer 28

surplus

Question 29

buyers determine the ____ for product.

Answer 29

demand

Question 30

__ take price given buy market

Answer 30

price takers

Question 31

the only seller in the market. Sets price.

Answer 31

monopoly

Question 32

many sell the same products in different versions, (non-price attribute difference)

Answer 32

monopolistic competition

Question 33

price rises, quantity demanded falls.

Answer 33

law of demand

Question 34

relationship between the price of good and quantity demanded

Answer 34

demand schedule

Question 35

relationship between the price and quantity demanded

Answer 35

demand curve

Question 36

the sum of all individual demands for a good/service.

Answer 36

market demand

Question 37

sum of all demand curves horizontally

Answer 37

market demand curve

Question 38

for a ___ good increased income = increased demand.

Answer 38

normal

Question 39

for a ___ increased income leads to decreased demand.

Answer 39

inferior good.

Question 40

increase in price of one leads to increase of demand for other.

Answer 40

substitutes

Question 41

increase in price of one leads to decrease in demand of other.

Answer 41

complements

Question 42

market supply

Answer 42

sum of supplies of all sellers for a good/service

Question 43

market supply curve

Answer 43

sum of individual supply curve

Question 44

supply and demand equal

Answer 44

equilibrium

Question 45

surplus

Answer 45

more supplied than demanded

Question 46

price of any good adjusts to bring quantity supplied and demanded into balance

Answer 46

law of supply and demand

Question 47

prices___ resources.

Answer 47

allocate