What is the amount demanded at a particular price called?
Quantity demand.
100
Which of the following is NOT a determinant of demand?
A) consumer income
B) prices of related goods
C) consumer expectations and tastes
D) all of the above would affect demand when other factors are assumed constant
D) all of the above would affect demand when other factors are assumed constant
100
A decrease in the supply of pizza is reflected by a _____ shift of the supply curve.
Leftward.
100
Many students would like to own an expensive sports car. Is this considered demand? Why or why not?
No, because they may not all be willing or able to buy an expensive sports car, even though it would be nice to have one.
200
True or False: The more of a good a person consumes per period, the larger the increase in total utility from consuming one more unit.
False. The more good consumed the smaller the increase in total utility.
200
What is the price multiplied by the quantity demanded at that price?
Total revenue.
200
Which of the following does NOT influence the elasticity of demand?
A) availability of substitute products
B) availability of complementary products
C) the share of the consumer's budget spent on the good
D) the timeframe of the purchase
B) availability of complementary products
200
If less people buy shoes for one day, the demand curve for that day will shift in which direction?
Left.
200
Which law or rule states that as more of a variable resource is added to a given amount of fixed resources, marginal product eventually declines and could become negative?
The law of diminishing returns.
300
True or False: Elasticity of demand is percentage change in quantity demanded over percentage change in price.
True.
300
What is a curve or line showing the quantities of a particular good supplied at various prices during a given time period?
The supply curve.
300
The purpose of advertising is to
A) shift a product's demand curve to the right
B) shift a product's demand curve to the left
C) make a product's demand more elastic
D) point out a product's substitutes to its customers
A) shift a product's demand curve to the right
300
In which direction does the demand curve slope?
As you go towards the right, it slopes downward.
300
Which production cost s independent of the firm's output?
Fixed cost.
400
Tue or False: Quantity demanded at a particular price is represented by an individual point on the demand curve.
True.
400
What does the law of demand state?
The quantity of a good demanded per period relates inversely to its price, other things constant.
400
Which of the following is an example of a variable cost?
A) the cost or wages for night security guards
B) the cost of fire insurance for a firm's factory
C) the cost of raw materials used to produce goods
D) the cost of renting a computer for a firm's accounting office
A) the cost or wages for night security guards
400
What would happen to the demand curve for towels today if a large store advertises that it will have a 50 percent off sale on towels next week?
The demand curve will shift right.
400
What are the five determinants of supply?
The cost of resources used to make the good, the price of other goods these resources could make, the technology used to make the good, producer expectations, and the number of sellers in the market.
500
True or False: The demand for a normal good decreases as money income increases.
False. The demand for normal goods usually increases as income increases.
500
Marginal cost is change in ______ over change in quantity.
Cost.
500
Which of the following is an example of complementary goods?
A) dining room tables and floor lamps
B) warm gloves and trips to Florida
C) peanut butter and jelly
D) alarm clocks and automobiles
C) peanut butter and jelly
500
The cost of crude oil increases by 25 percent. Crude oil is the basic raw material used to produce plastic. What will this do to the supply curve for plastic toys?
It will shift left.
500
What forces reduce a firm's average cost as the firm's size, or scale, increases in the long run?