Homework
Which of the following events must cause equilibrium price to fall in the market for gas-powered snow blowers?
a. The weather forecasters predict a drier than normal winter and producers of gas-powered snow blowers find a faster method of production.
b. The price of gas decreases and the price of plastic, an important input into snow blowers, decreases.
c. The price of snow plow services increases and there are fewer producers of gas-powered snow blowers.
a. The weather forecasters predict a drier than normal winter and producers of gas-powered snow blowers find a faster method of production.
What is a Demand schedule?
a table that shows the relationship between the
price of a good and the quantity demanded
What is a perfectly competitive market?
All goods are exactly the same. Buyers & sellers so numerous that no one can affect market price—each is a “price taker".
Inferior good example
Ramen Noodles
Sonia buys 15 lattes per month when the price is $4.00 per latte and 20 lattes per month when the price is $3.00 per latte. Sonia's buying decisions demonstrate _______.
a. market equilibrium
b. the law of demand
c. quantities supplied
d. the law of supply
b. the law of demand
The quantity demanded in the market is the ___ of the
quantities demanded by all buyers at each price.
Define Market
a group of buyers and sellers of a
particular product.
2 goods are_____ if an increase in the price of 1 causes an increase in demand for the other.
substitutes
If candles and candlesticks are complements, then which of the following would increase the demand for candles?
a. A decrease in the price of candlesticks
b. A decrease in income
c. An increase in the price of candlesticks
d. A decrease in the price of candles
a. A decrease in the price of candlesticks
Increase in ____ of buyers increases quantity demanded at each price.
Law of demand definition
The claim that the quantity demanded of a good falls when the price of the good rises, other things equal.
2 goods are ____ if an increase in the price of 1 causes a fall in demand for the other.
Today's supply curve for corn could shift in response to a change in _______.
a. the expected future price of corn
b. consumer's income levels
c. today's price of corn
d. today's demand for corn
a. the expected future price of corn
Demand for a ____ ____ is positively related
to income.
Normal good
____ is over preforming money supply
Bitcoin
The _____ _____ of any good is the
amount that sellers are willing and able to sell.
quantity supplied
If the price of gasoline decreases significantly, what is most likely to happen in the market for cars?
a) The demand curve for cars will shift to the right, as more people want to buy cars.
b) The supply curve for cars will shift to the left, as producers reduce output.
c) The demand for cars will decrease, since gasoline is now cheaper.
d) The quantity of cars supplied will decrease because input costs for gasoline fell.
a) The demand curve for cars will shift to the right, as more people want to buy cars.
Demand for an ____ _____ is negatively
related to income
inferior good
You should invest in things that inflate the ____.
Fastest
Which of the following would cause the equilibrium price of apples to rise?
a) An increase in the supply of apples and an increase in demand for apples.
b) A decrease in the supply of apples and an increase in demand for apples.
c) A decrease in both the supply of apples and the demand for apples.
d) An increase in the supply of apples and a decrease in demand for apples.
b) A decrease in the supply of apples and an increase in demand for apples.