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18 Cards in this Set
- Front
- Back
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What is a price ceiling |
A legal maximum on the price at which a good can be sold |
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What is a price floor |
A legal minimum on the price at which a good can be sold |
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What is a binding constraint |
When the price ceiling is lower than the equilibrium price |
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What is tax incidence According to the law of demand, a reduction in the price of a product will |
The manner in which the burden of a tax is shared among participants in the market |
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According to the law of demand, a reduction in the price of a product will |
Increase the quantity demanded of the product |
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If the price of leather increases, then |
The supply curve of leather shoes will shift to the left |
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New technology has reduce the cost of mining gold. This discovery will probably |
Cause the supply curve of gold to shift to the right |
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If the price of fertilizer declines, fertilizer is used to help grow wheat, this would be likely to |
Increase the supply of wheat |
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If a severe drought destroyed much of the hay crop |
The price of hay would tend to rise |
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The phrase "increase in demand" means that |
The demand curve for the product has shifted to the right |
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If the price of hamburger increases, this is likely to |
Reduce the quantity demanded of hamburger |
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If an increase in income results in a leftward shift of the demand curve for product X than X is a |
Inferior good |
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If chicken and fish are substitutes, then an increase in the price of chicken will |
Shift the demand curve for fish to the right |
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If sour cream and baked potatoes are complements, an increase in the price of baked potatoes would tend to |
Decrease the demand for sour cream |
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I left work shift in demand curve for new cars could be caused by |
A decrease in per capita income |
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What is per capita income |
Per capita income or average income measures the average income earned per person in a given area |
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Which of the following will shift the demand curve for compact cars to the right |
An increase in the price of full-size cars |
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According to the law of supply |
Price and quantity supplied are directly related |
