Definitions Goods Putting it all together Chapter three To shift or not to shift $100 $200 $300 $400 $500 $ 500$500
An institution or mechanism that brings together buyers and sellers of particular goods, services, or resources. A For $100
What is a market? Back to Game
A schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time. A For $200
What is demand ? Back to Game
A schedule or curve showing the amount of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period. A For $300
What is supply? Back to Game
The table form of representing demand. A For $400
What is a demand schedule? Back to Game
As prices rise, the quantity supplied rises, as price falls, the quantity supplied falls. A For $500
What is the law of supply? Back to Game
Products whose demand varies directly with money income. B For $100
What are normal goods? Back to Game
Products whose demand varies inversely with money. B For $200
What are inferior goods? Back to Game
Goods that can be used in place of another good. B For $300
What are substitution goods? Back to Game
Goods that are used together with other good. B For $400
What are complementary goods? Back to Game
Goods that are not related to one another. B For $500
What are independent goods? Back to Game
If beef and chicken are substitutes, then this is what happens when the price of beef rises. C For $100
What is the demand for chicken rises? Back to Game
If Hummers and gasoline are complements, then this is what happens when the price of gasoline increase. C For $200
What is the demand for Hummers decreases? Back to Game
Expectations of higher future prices may cause this change in demand today. C For $300
What is increase current demand ? Back to Game
You work for BP and there is news that your business is going to lay-off 10,000 employees in the next six- months, thus your demand for a vacation does this. C For $400
What is decrease? Back to Game
C For $500 Higher resource prices raise production cost, thus causing this change in supply.
What is a decrease in supply? Back to Game
It is represented in a shift of the supply curve to the right. D For $100
What is an increase in supply? Back to Game
It is represented by a change in the quantity demanded. D For $200
What is a movement along a fixed demand curve from one point to another point? Back to Game
This relationship exist between price and quantity demanded. D For $300
What is an inverse relationship? Back to Game
They are all the determinants that will shift the demand curve to the right or left. D For $400
What are; Consumers’ taste Consumers’ incomes Number of consumers in the market Consumer expectations Price of related goods Back to Game
They are all the determinants that will shift the supply curve to the right or left. D For $500
What are; Resource prices Prices of alternative goods Technology Number of sellers in the market Price expectations Subsidies Taxes? Back to Game
Graphically, the intersection of the supply curve and the demand curve for a product indicates this. E For $100
What is market equilibrium? Back to Game
We can see this effect when a decline in the price of chicken will increase the purchasing power of consumers, enabling people to buy more chicken. E For $200
What is the income effect ? Back to Game
They are all the factors that determine the relationship between price and quantity demanded. E For $300
What are; People buy more of a product at a low price. Law of diminishing marginal utility. Income effect. Substitution effect? Back to Game
Improvements in technology enable firms to produce units of output with fewer resources, leading to this. E For $400
What is an increase in supply? Back to Game
It occurs when there is any price level above equilibrium. E For $500
What is a surplus of product? Back to Game