A tabular figure that showcases the relationship between prices and the specific quantities demanded at each of these prices.
Demand Schedule
What factor of production is any form of human effort exerted in the production of goods and services?
Labor
What do you call a condition or state in which economic forces are balanced?
Equilibrium
What is an economic measure of how sensitive one economic factor is to changes in another?
Elasticity
Modified T/F: If the statement is false, state the word or phrase that makes it false and correct it.
"Demand is the amount of a good or service people will buy at a particular price at a particular time."
False ; Demand → Quantity Demanded
Find what is wrong in the statement for The Law of Supply:
"If the price of a good or service goes UP, the quantity supplied for such good or service will also go UP; if the price goes DOWN the quantity supplied also goes DOWN."
There is no ceteris paribus.
Finish the statement.
"Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers _________."
are equal
Modified T/F: If the statement is false, state the word or phrase that makes it false and correct it.
"The price elasticity of demand shows how a change in price affects the quantity of a product demanded."
True
State all the forces that cause a change in the demand curve.
Taste or preferences
Changing incomes
Occasional or seasonal products
Population change
Substitute and complementary goods
Expectations of future prices
Modified T/F: If the statement is false, state the word or phrase that makes it false and correct it.
The intercept in the supply curve could be negative because suppliers want to maximize profit; they cannot maximize profit if price is zero. But they still have good/service kept, but not release it.
True
Modified T/F: If the statement is false, state the word or phrase that makes it false and correct it.
"When the demand increases, this will cause the equilibrium price to fall, consequently increasing the quantity supplied."
False; Rise → Fall
Multiple choice.
A key determinant of the price elasticity of supply us:
A) The ability of sellers to change the price of the good they produce
B) The ability of sellers to change the amount of the good they produce
C) How responsive buyers are to changes in seller’s prices
D) The slope of the demand curve
B) The ability of sellers to change the amount of the good they produce