C3:worksheet

Front 1

In economics, the best demand for a good, refers to the amount of the good people:

Back 1

Are willing to buy at various prices

Front 2

The law of demand refers to the

Back 2

Inverse relationship between the price of a good and the willingness of consumers to buy it.

Front 3

The law of demand indicates that as the price of a good increases:

Back 3

Buyers buy less of it

Front 4

Consumers buy less of a good as it's price increases because:

Back 4

Substitute goods ate now relatively cheaper

Front 5

According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?

Back 5

When non price determinants, like income and the number of buyers, are unchanged.

Front 6

The "other things being equal" clause in the law of demand does NOT allow which of the following factors to change

Back 6

Consumer income
The prices of other goods
Consumer tastes and preference

Front 7

The law of demand is graphically demonstrated by a(n):

Back 7

Downward-sloping demand curve

Front 8

A decrease in quantity demanded is given by a(n)

Back 8

Upward movement to the left along the demand curve

Front 9

An increase in the quantity demanded of a good is MOST often due to:

Back 9

Lower prices

Front 10

We can find the market demand for pears by:

Back 10

Adding up all the individual demand curves for pears

Front 11

A movement along a demand curve is called a change in:

Back 11

Quantity demanded

Front 12

When economists say the demand for a product has increased, they mean the:

Back 12

Demand curve has shifted to the right

Front 13

Which of the following is most likely to shift the demand curve for electricity to the left

Back 13

Consumers become more energy conscious

Front 14

Which of the following would shift the demand curve for autos to the right

Back 14

A fall of price of auto insurance

Front 15

Which of the following will NOT shift the demand curve for televisions

Back 15

An increase in the price of televisions

Front 16

If X is a normal good, a rise in consumer income will shift the:

Back 16

Demand curve for X to the right

Front 17

Which of the following g will cause the demand curve for a good to shift to the right?

Back 17

Increase in the price of a substitute good

Front 18

Under the law of supply, any decrease in price will cause __________ in quantity supplied

Back 18

A decrease

Front 19

According to the law of supply, there is a direct relationship between quantity supplied and

Back 19

The price of the good

Front 20

When economists say the quantity supplied of a product has increased, they men the

Back 20

Price of the product has risen, and consequently, suppliers are producing more of it

Front 21

Which of the following is MOST likely to increase the supply of corn

Back 21

Farmers that grow soybeans can also grow corn, and the price of soybean drops by 75

Front 22

A technological improvement in producing a good A would be a shift in the

Back 22

Supply curve for A to the right

Front 23

If more people enter medical school, we can expect

Back 23

The supply of doctors to increase

Front 24

Which of the following would NOT cause a shift in the supply curve for a good

Back 24

An increase in demand for that good

Front 25

The price of a good will rise when

Back 25

There is a shortage of the good

Front 26

If a shortage of a product currently exists in the market

Back 26

The quantity demanded exceeds the quantity supply end at the market

Front 27

When the price of a good is below its equilibrium leave, a

Back 27

Shortage puts upward pressure on the price

Front 28

When quantity supplied equals quantity demanded' there is

Back 28

A market-clearing price (equilibrium price)

Front 29

The MOST important characteristics of the equilibrium price is that it

Back 29

Clears the market

Front 30

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then

Back 30

The market is in equilibrium

Front 31

All of the following apply to the description of a market in equilibrium EXCEPT

Back 31

The price of the good is falling

Front 32

The use of a price system eliminates

Back 32

Shortages and surpluses

Front 33

In a market, competitive forces guarantee that any price other than equilibrium price is

Back 33

Temporary

Front 34

Market equilibrium is

Back 34

Defined as the condition in which there is neither a shortage or surplus
Defined as the condition under which the separately formulated plans of buyer and sellers exactly mesh when tested in the market
Represented graphically by the intersection if the supply and demand curves

Front 35

Which of the following is TRUE about the market equilibrium

Back 35

As the price increases, the quantity demanded decreases and the quantity supplied increases