Unit 3 Flashcards
a smartphone that is set to drop in price in three months
<–\
The amount of a good or service that consumers are willing and able to purchase is _____.
demand
The trend of utility to decrease as consumption increases is known as diminishing marginal utility.
true
___ is measured by dividing the total products produced by the number of workers.
Productivity
A price ______ typically creates a surplus of services and goods.
floor
A(n) ______ results when supply exceeds demand in a market.
surplus
Which of the following would be a short-term decision for a grocery store?
hiring a new director for quality control and the meat department
______ cost measures the additional cost required to produce one more product.
Marginal
The law of supply says that if the price of a good increases, so will the supply of the good.
true
____ is the loss of capital due to wear and tear.
Depreciation
What would happen to equilibrium price if demand increased?
The equilibrium price will increase and shift right.
What would NOT be a part of the explicit costs of a company?
depreciation
A(n) ______ is the result whenever demand exceeds supply.
shortage
Market shortages are created when a government enforces a price _____.
ceiling
A key component to using quantity demanded is the notion of ____.
income and willingness
Demand for a(n) ___ good declines as income increases.
inferior
The government passes a new tax on fast food that takes effect immediately.
/<–/
The minimum profit matching what could be gained by doing something else is ___ profit.
normal
the effect on the chicken liver market as demand increases for chicken legs
/–>/
When a business decides on a course of action, ___ is/are what is given up.
opportunity cost
A business owner orders supplies in February in the _____ that there will be demand for snow cones that summer.
expectation
The point of balance between quantity demanded and quantity supplied is the ___ price.
equilibrium
A good that can be used in place of another is a(n) ____ good.
substitute
The direction of the demand curve is a visual representation of ___.
the law of demand
