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9 Cards in this Set

  • Front
  • Back
If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium:
price must rise
When an economist says that the demand for a product has increased, this means that:
quantity demanded is greater at each possible price
Which of the following best describes an inferior good?
A good for which income and quantity demanded are inversely related
A leftward shift in the demand curve for product E might be caused by:
an increase in the price of a product that is complementary to E
At the equilibrium price:
there will be neither a shortage nor a surplus
True or false: MP3 players and headphones are substitute goods.
A market is characterized by:
exchange between buyers and sellers
A partial explanation for the inverse relationship between price and quantity demanded is that a:
higher price reduces the real incomes of buyers
If consumer incomes increase, the demand for product Y:
will shift to the right if Y is a normal good