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11 Cards in this Set
- Front
- Back
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A change in which variable will change the market demand for a product?
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Expected future prices
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Which of the following will NOT shift the demand curve for a good?
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An increase in the price of a good
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The subsitution effect of a price change refers to
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The change in quantity demanded that results from a change in pirce making a good more or less expensive relative to other goods that are substitues
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The income effect of a price change results in a
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MOVEMENT along the demand curve due to a change in purchasing power brought about bye the price change
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A deman curve shows the relationship between
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the price of a product and the quantity of the product demanded
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By drawing a demand curve w/ price on the verticle axis and quantity on the horizontal axis, economist assume that the most important determinant of the demand for a good is
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the price of the good
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The phrase 'demand has increase' means that
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a demand curve has shifted to the right
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Famers can plant either corn or soybeans in the fields. Which of the following would cuase the supply of soybeans to increase?
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A decrease in the price of corn
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If a firm expects that the price of its product will be lower in the future than it is today
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the firm has in an inscentive to increase supply now and decrease supply in the future
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If in the market for apples the supply has decreased then
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the supply cruve for apples has shifted to the left
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An externality is
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a benefit or cost experienced by someone who is not a producer or consumer of a good or service
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