Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/9

Click to flip

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.
False
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