EXAM 1
TRUE OR FALSE
IS THE PRICE OF INPUTS A DETERMINANT OF DEMAND
FALSE
Holding all else constant, a higher price for ski lift tickets would be expected to
DECREASE IN THE DEMAND FOR SKIS
Name the determinant of demand?
price of substitute,complimentary and unrelated goods
When we move up or down a given demand curve,
non-price determinants of demand are assumed to be constant.
True market value of a corporation
Market Capitalization
If the price of a substitute to good X increases, then
THEN THE DEMAND FOR GOOD X WILL INCREASE
Ceteris paribus is a Latin phrase that literally means
OTHER THINGS BEING EQUAL
Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are
substitute goods
True or False: A change in the price of a good or service would not shift the demand curve
TRUE
Ownership of a Company?
What is Stock/Share
Suppose you like banana cream pie made with vanilla pudding. Assuming all other things are constant, you notice that the price of bananas is higher. How would your demand for vanilla pudding be affected by this?
DEMAND WOULD DECREASE
When the price of a good or service changes,
THERE IS MOVEMENT ALONG THE DEMAND CURVE
When there is a shortage in a market,
price must increase
The downward-sloping demand curve reflects
There is an inverse relationship between price and quantity demanded.
a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
What is a Bond
A higher price for batteries would tend to LEAD TO A LOWER OR INCREASE DEMAND OF ELECTRICITY
INCREASE OF DEMAND FOR ELECTRICITY
Other things equal, when the price of a good rises, the quantity supplied of the good also rises.
WHAT IS THE LAW OF SUPPLY
When the price is higher than the equilibrium price,what do sellers and buyers do
sellers desire to produce and sell more than buyers wish to purchase.
Wheat is the main input in the production of flour. If the price of wheat increases, all else equal, we would expect
supply of flour to decrease
process of offering shares of a private corporation to the public in a new stock issuance
What is a IPO
What will happen in the rice market if buyers are expecting higher prices in the near future?
THE DEMAND FOR RICE WILL INCREASE
Suppose that there is an increase in input prices. We would expect
SUPPLY WILL DECREASE
If, at the current price, there is a shortage of a good.
Is the price below or above equilibrium?
Below
What type of stock has voting powers?
Common
PRICE Qd Qs 10 10 100 8 20 80 6 30 60 4 40 40 2 50 20 In the table shown, if the price were $8,
Shortage of 60 units and price would be expected to fall