Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
A schedule that shows the various amounts of a product consumers are willing and able to purchase at each price in a series of possible prices during a specified period of time is called what?
|
Demand
Pg. 48 |
|
|
The reason for the law of demand can best be explained in terms of... |
The rationing function of prices
Pg. 49 |
|
|
The price of video game players falls. What will likely happen to the equilibrium price and quantity of video games? |
Price will decrease; quantity will decrease.
Pg. 56-58 |
|
|
A decrease in the number of buyers will... |
Decrease the demand for a product
Pg. 51-52 |
|
|
The income of a consumer decreases and the consumers demand for a particular good increases. The good is then.. |
Inferior
Pg. 51-52 |
|
|
What could cause a decrease in consumer demand for a product? |
A decrease in consumer income
Pg. 51-52 |
|
|
If two goods are substitutes for each other, an increase in the price of one will... |
Increase the demand for the other
Pg. 52 |
|
|
An increase in the price of A will decrease the demand for B then the two products are called what? (Price of lettuce increases; demand for salad dressing decreases) |
Complementary goods
Pg. 52 |
|
|
An increase in the price of Y will have no significant effect on the demand for X because they are what? (Butter and golf balls)
|
Independent goods
Pg. 52 |
|
|
The law of supply states that, other things being constant, as price increases... |
Supply increases
Pg. 53 |
|
|
A decrease in the supply of a product would most likely be caused by what? |
A decrease in resource costs for production
Pg. 54-55 |
|
|
The quantity supplied of a product is greater than the quantity demanded for a product would result in what? |
Surplus of a product
Pg. 56-57 |
|
|
When the price of a product is below the equilibrium price it results in what? |
A shortage of a good
Pg. 56-57 |
|
|
The particular mix of goods and services most highly valued by society is called what? (Example: computers with word processors instead of typewriters) |
Allocative efficiency
Pg. 58-59 |
|
|
What will affect the price in an indeterminate way and decrease the quantity exchanged? |
A decrease in supply and a decrease in demand
Pg. 59-60 |
|
|
What will increase the price and the effect upon exchange will be indeterminate? |
An increase in demand and a decrease in supply
Pg. 59-60 |
|
|
What will affect price in an indeterminate way and increase the quantity exchanged? |
An increase in supply and an increase in demand
Pg. 59-60 |
|
|
A cold spell on Florida devastated the orange crop and as a result California oranges command a higher price which means... |
The supply of Florida oranges decreases, causing their price to increase and the demand for California oranges to increase
Pg. 59-60 |
|
|
A maximum price set by the government that is designed to help consumers is called what? |
Price ceiling
Pg. 61 |
