question
"Deadweight loss" occurs when
answer
markets are not in equilibrium
question
Which of the following concepts is a central part of Microeconomics?
answer
Exchange
question
The current demand curve for an inferior good shifts leftward if
answer
buyers' income increases
question
"Competitive markets" are characterized by
answer
firms being "price takers"
question
Which of the following influence the supply of a product?
answer
Technology
question
According to microeconomists, which of the following terms refers to a consumer's "willingness to pay" for a product?
answer
reservation price
question
A "public good"
answer
is usually provided by government.
question
You observe that an increase in the price of salsa decreases the demand for tortilla chips and increases the demand for potato chips. You can conclude that
answer
salsa and tortilla chips are complements
question
The "law of demand" most directly means that consumers buy more of a good _______, all else equal.
answer
when its price is lower
question
Which of the following shifts the demand curve for hot dogs rightward, all else equal?
answer
an decrease in the price of a hotdog bun
question
According to the economists, one of the likely outcomes of a free, voluntary market exchange is "consumer surplus." Consumer surplus
answer
measures the net benefit that consumers receive from the exchange
question
The "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises
answer
there is a movement along the supply curve upward and to the right
question
In Table 2 of the textbook, the price elasticity of demand coefficient is reported for "Soft Drinks" and "Coke." The price elasticity of demand coefficient for "Coke" is different from "Soft Drinks" because
answer
Coke has more substitutes than "Soft Drinks"
question
If we think of Price Elasticity of Demand as a cause/effect relationship, we can think of the cause as a change in ______ and the effect as a change in _________
answer
price; quantity demanded
question
As the time frame gets longer, the demand curve of a product becomes _____
answer
flatter
question
When a demand curve is perfectly inelastic, we can describe it as being __
answer
vertical
question
When a demand curve is perfectly elastic, its price elasticity of demand coefficient is ______
answer
infinity
question
Which answer below makes the following statement true? "For Income Elasticity of Demand," we __________ the absolute value of the coefficient because we want to determine whether a good is ___________
answer
do not take ; normal or inferior
question
As the time frame gets longer, the demand curve of a product tends to ___
answer
becomes more elastic
question
Which of the following is the correct definition of "Income elasticity of demand?"
answer
the responsiveness of quantity demand to changes in buyers' income
question
Which of the following is not considered to be a determinant of price elasticity of demand?
answer
the number of buyers
question
Which of the following words best describes an "elastic" demand curve?
answer
flat
question
In microeconomics, the concept of "elasticity" is most closely related to which of the following terms?
answer
responsiveness
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