question
A _________ is any arrangement that enables buyers and sellers to get information and do business with each other.
answer
Market
question
A __________ ________ is a market that has many buyers and many sellers so no single buyer or seller can influence the price.
answer
Competitive Market
question
The ________ __________ of a good is the amount of money needed to buy it.
answer
Money price
question
The _____ ________ of a good—the ratio of its money price to the money price of the next best alternative good—is its opportunity cost.
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Relative price
question
If you demand something, then you _______ it, ________ ________ it, __________ ________ _______ it.
answer
Want ; can afford; have made a plan to buy
question
_______ are the unlimited desires or wishes people have for goods and services. _______ reflects a decision about which wants to satisfy.
answer
Wants; demand
question
The _________ __________ of a good or service is the amount that consumers plan to buy during a particular time period, and at a particular price.
answer
Quantity demanded
question
The _________ _____ _________states:
Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded; and the lower the price of a good, the larger is the quantity demanded.
Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded; and the lower the price of a good, the larger is the quantity demanded.
answer
Law of demand
question
The law of demand results from
_____________ _____________;
_____________ ____________.
_____________ _____________;
_____________ ____________.
answer
Substitution; income
question
Substitution Effect: When the __________ ________ (opportunity cost) of a good or service rises, people seek substitutes for it, so the quantity demanded of the good or service ____________.
answer
Relative price; decreases
question
______ __________: When the price of a good or service rises relative to income, people cannot afford all the things they previously bought, so the quantity demanded of the good or service decreases.
answer
Income effect
question
The term ________ refers to the entire relationship between the price of the good and quantity demanded of the good.
answer
Demand
question
A _________ _________ shows the relationship between the quantity demanded of a good and its price when all other influences on consumers' planned purchases remain the same.
answer
Demand curve
question
A rise in the price, other things remaining the same, brings a __________ in the quantity demanded and a movement ______ along the demand curve.
answer
Decrease; up
question
A fall in the price, other things remaining the same, brings an ___________ in the quantity demanded and a movement __________ along the demand curve.
answer
Increase; down
question
A demand curve is also a _________ ___ _________ ____ __________ curve
answer
Willingness and ability to pay
question
The ______ the quantity available, the ______ is the price that someone is willing to pay for another unit.
answer
Smaller; higher
question
Willingness to pay measures _________ ___________.
answer
Marginal benefit
question
When some influence on buying plans other than the price of the good changes, there is a __________ ______ _________ for that good.
answer
Change in demand
question
The ________ of the good that people plan to buy changes at each and every ________ , so there is a new demand curve.
answer
Quantity; price
question
When demand increases, the demand curve shifts _________.
answer
Rightward
question
When demand ______, the demand curve shifts leftward.
answer
Decreases
question
Six main factors that change demand are:
________________; ____________, _______, _______; ________; ___________; _______.
________________; ____________, _______, _______; ________; ___________; _______.
answer
Prices of related goods; expected future prices, income and credit; income; population; preferences
question
A _________ is a good that can be used in place of another good.
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Substitute
question
A _________ is a good that is used in conjunction with another good.
answer
Complement
question
When the price of substitute for an energy bar ____ or when the price of a complement of an energy bar ________, the demand for energy bars increases.
answer
Rises; falls
question
If the expected future price of a good rises, current demand for the good _________ and the demand curve shifts ___________.
answer
Increases; rightward
question
When income increases, consumers buy _______ of most goods and the demand curve shifts ____________.
answer
More; rightward
question
A _______ good is one for which demand increases as income increases.
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Normal
question
An ______ good is a good for which demand decreases as income increases.
answer
Inferior
question
When expected future income __________ or when credit is _______ to obtain, the demand might increase now.
answer
Increases; easy
question
The larger the ___________ , the greater is the demand for all goods.
answer
Population
question
People with the same income have different demands if they have different ____________.
answer
Preferences
question
This is the only factor that affects movement along the demand curve.
answer
Price
question
If the _____ remains the same but one of the other influences on buyers' plans changes, demand changes and the demand curve _______.
answer
Price; shifts
question
If a firm supplies a good or service, then the firm
1. Has the ______ and the ______ to produce it,
2. Can ______ from producing it, and
3. Has made a ________ __________ to produce and sell it.
1. Has the ______ and the ______ to produce it,
2. Can ______ from producing it, and
3. Has made a ________ __________ to produce and sell it.
answer
Resources; technology; profit; definite plan
question
Resources and technology determine what it is ________ _____ __________. _____ reflects a decision about which technologically feasible items to produce
answer
Possible to produce; Supply
question
The __________ _________ of a good or service is the amount that producers plan to sell during a given time period at a particular price.
answer
Quantity Supplied
question
Other things remaining the same, the higher the price of a good, the greater is the quantity supplied; and
the lower the price of a good, the smaller is the quantity supplied.
the lower the price of a good, the smaller is the quantity supplied.
answer
Law of Supply
question
The law of supply results from the general tendency for the marginal cost of producing a good or service to increase as the ________ _________ increases.
answer
Quantity produced
question
Producers are willing to supply a good only if they can at least cover their __________ _________ of production.
answer
Marginal cost
question
The term ________ refers to the entire relationship between the quantity supplied and the price of a good.
answer
Supply
question
The __________ __________ shows the relationship between the quantity supplied of a good and its price when all other influences on producers' planned sales remain the same.
answer
Supply curve
question
A _____ in the price of an energy bar, other things remaining the same, brings an increase in the quantity supplied.
answer
Rise
question
A supply curve is also a ______ _______ ________ curve.
answer
Minimum supply price
question
As the quantity produced ________, marginal cost increases.
The lowest price at which someone is willing to sell an additional unit ______.
This lowest price is ______ _________.
The lowest price at which someone is willing to sell an additional unit ______.
This lowest price is ______ _________.
answer
Increases; rises; marginal cost
question
When some influence on selling plans other than the price of the good changes, there is a __________ ______ _________ of that good.
answer
Change in supply
question
The quantity of the good that producers plan to sell ________ at each and every price, so there is a _____ supply curve.
answer
Changes; new
question
When supply _________, the supply curve shifts rightward.
answer
Increases
question
When supply decreases, the supply curve shifts ___________.
answer
Leftward
question
The main factors that change supply of a good are:
The prices of _____ ______ _________, the prices of _____ ________produced, _________ ________ prices, the number of ________, __________ , state of _________.
The prices of _____ ______ _________, the prices of _____ ________produced, _________ ________ prices, the number of ________, __________ , state of _________.
answer
Factors of production; related goods; expected future; suppliers; technology; nature
question
If the price of a factor of production used to produce a good ______, the _____ ________ that a supplier is willing to accept for producing each quantity of that good rises.
answer
Rises; minimum price
question
So a rise in the price of a factor of production ______ supply and shifts the supply curve _______.
answer
Decreases; leftward
question
A _________ ___ _________ for a good is another good that can be produced using the same resources.
answer
Substitute in production
question
The supply of a good ________ if the price of a substitute in production falls.
answer
Increases
question
Goods are ______ ______ ___________ if they must be produced together.
answer
Complements in production
question
The supply of a good increases if the price of a complement in production ______.
answer
Rises
question
If the expected future price of a good rises, the supply of the good today __________ and the supply curve shifts ________.
answer
Decreases; leftward
question
The larger the number of suppliers of a good, the ______ is the supply of the good. An increase in the number of suppliers shifts the supply curve _______.
answer
Greater; rightward
question
Advances in technology create new products and ________ the cost of producing existing products.
answer
Lower
question
So advances in technology __________ supply and shift the supply curve rightward.
answer
Increase
question
The state of nature includes all the ______ _________ that influence production.
answer
Natural forces
question
A natural disaster ______ supply and shifts the supply curve _________.
answer
Decreases; leftward
question
Price is the only factor that affects __________ ________ and causes a movement along the supply curve.
answer
Quantity supplied
question
If the price remains the same but some other influence on sellers' plans changes, supply ________ and the supply curve __________.
answer
Changes; shifts
question
_________ is a situation in which opposing forces balance each other. It occurs in a market when the price balances the plans of buyers and sellers.
answer
Equilibrium
question
The _____ ______ is the price at which the quantity demanded equals the quantity supplied.
answer
Equilibrium price
question
The _________ _______ is the quantity bought and sold at the equilibrium price.
answer
Equilibrium quantity
question
Price ________ buying and selling plans.
answer
Regulates
question
Price __________ when plans don't match.
answer
Adjusts
question
When quantity supplied exceeds the quantity demanded there is a
______________.
______________.
answer
Surplus
question
When quantity demanded exceeds the quantity supplied there is a ______________.
answer
Shortage
question
When quantity demanded _______ the quantity supplied there is neither a shortage nor a surplus.
answer
Equals
question
At any price above the equilibrium price, a surplus forces the price _________.
answer
Down
question
At any price below the equilibrium price, a shortage forces the price _____.
answer
Up
question
At the equilibrium price, buyers' plans and sellers' plans ______ and the price doesn't change until some event changes either demand or supply.
answer
Agree
question
A change in demand or supply or both demand and supply changes the equilibrium _______ and the equilibrium ________.
answer
Price; quantity
question
When demand increases, there is a movement up along the _______ ________.
answer
Supply curve
question
The equilibrium price _____ and the equilibrium quantity _____.
answer
Rises; increases
question
When demand decreases, the equilibrium price _______ and the equilibrium quantity ________.
answer
Falls; decreases
question
When supply increases, there is a movement down along the _________ ________.
answer
Demand curve
question
When supply increases, the equilibrium price ________ and the equilibrium quantity _________.
answer
Falls; increases
question
When supply decreases,the equilibrium price ______ and the equilibrium quantity __________.
answer
Decreases; rises
question
An increase in demand and an increase in supply _______ the equilibrium quantity.
answer
Increase
question
When there is an increase in supply and demand, the change in equilibrium price is _________ because the increase in demand _______ the equilibrium price and the increase in supply ______ it.
answer
Uncertain; raises; lowers
question
A decrease in both demand and supply ________ the equilibrium quantity.
answer
Decreases
question
When there is a decrease in both demand and supply, the change in equilibrium price is uncertain because the decrease in demand _________ the equilibrium price and the decrease in supply _____ it.
answer
Lowers; raises
question
A decrease in demand and an increase in supply ______ the equilibrium PRICE.
answer
Lowers
question
When there is a decrease in demand and increase in supply, the change in equilibrium quantity is uncertain because the decrease in demand _______ the equilibrium _______ and the increase in supply ___________ it.
answer
Decreases; quantity; increases
question
An increase in demand and a decrease in supply _________ the equilibrium price.
answer
Raises
question
When there is an increase in demand and a decrease in supply, the change in equilibrium quantity is uncertain because the increase in demand _________ the equilibrium quantity and the decrease in supply __________ it.
answer
Increases; decreases
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