1
Quantity supplied refers to the total number of units consumers are willing to purchase at a given price.
True or False
False
The demand schedule for a good indicates the quantities that will be purchased at alternative market prices.
True or False
True
Refers to the relationship that a higher price leads to lower quantity demanded?
Law of Demand
A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:
Supply Curve
A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and _______________________, show on the horizontal axis.
Quantity
A demand curve shows the relationship between quantity demanded and . . .
Price
The ____________________________ is the only price where quantity demanded is equal to quantity supplied.
Equilibrium Price
If new manufacturers enter the computer industry, then _________________________________________________.
Supply Curve to the Right
After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:
Shift to the Left
______________ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.
Price Floors
The perfectly elastic supply curve is:
Demand is said to be _____________________ when the quantity demanded is not very responsive to changes in price.
Inelastic
The elasticity of supply is defined as the __________________ change in quantity supplied divided by the ________________change in price.
Percentage; Percentage
If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that:
Complement Goods
A product whose demand falls when income rises, rises, and vice versa
Inferior Good
Various factors cause a demand curve to shift. List four different factors.
Income
Changing tastes or preferences
Changes in the composition of the population
Price of substitute or complement changes
Changes in expectations about the future