2. Definitions Goods Putting it all together Chapter three To shift or not to shift $100 $200 $300 $400 $500 $ 500$500

3. An institution or mechanism that brings together buyers and sellers of particular goods, services, or resources. A For $100

4. What is a market? Back to Game

5. 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

6. What is demand ? Back to Game

7. 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

8. What is supply? Back to Game

9. The table form of representing demand. A For $400

10. What is a demand schedule? Back to Game

11. As prices rise, the quantity supplied rises, as price falls, the quantity supplied falls. A For $500

12. What is the law of supply? Back to Game

13. Products whose demand varies directly with money income. B For $100

14. What are normal goods? Back to Game

15. Products whose demand varies inversely with money. B For $200

16. What are inferior goods? Back to Game

17. Goods that can be used in place of another good. B For $300

18. What are substitution goods? Back to Game

19. Goods that are used together with other good. B For $400

20. What are complementary goods? Back to Game

21. Goods that are not related to one another. B For $500

22. What are independent goods? Back to Game

23. If beef and chicken are substitutes, then this is what happens when the price of beef rises. C For $100

24. What is the demand for chicken rises? Back to Game

25. If Hummers and gasoline are complements, then this is what happens when the price of gasoline increase. C For $200

26. What is the demand for Hummers decreases? Back to Game

27. Expectations of higher future prices may cause this change in demand today. C For $300

28. What is increase current demand ? Back to Game

29. 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

30. What is decrease? Back to Game

31. C For $500 Higher resource prices raise production cost, thus causing this change in supply.

32. What is a decrease in supply? Back to Game

33. It is represented in a shift of the supply curve to the right. D For $100

34. What is an increase in supply? Back to Game

35. It is represented by a change in the quantity demanded. D For $200

36. What is a movement along a fixed demand curve from one point to another point? Back to Game

37. This relationship exist between price and quantity demanded. D For $300

38. What is an inverse relationship? Back to Game

39. They are all the determinants that will shift the demand curve to the right or left. D For $400

40. What are; Consumers’ taste Consumers’ incomes Number of consumers in the market Consumer expectations Price of related goods Back to Game

41. They are all the determinants that will shift the supply curve to the right or left. D For $500

42. What are; Resource prices Prices of alternative goods Technology Number of sellers in the market Price expectations Subsidies Taxes? Back to Game

43. Graphically, the intersection of the supply curve and the demand curve for a product indicates this. E For $100

44. What is market equilibrium? Back to Game

45. 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

46. What is the income effect ? Back to Game

48. They are all the factors that determine the relationship between price and quantity demanded. E For $300

49. What are; People buy more of a product at a low price. Law of diminishing marginal utility. Income effect. Substitution effect? Back to Game

50. Improvements in technology enable firms to produce units of output with fewer resources, leading to this. E For $400

51. What is an increase in supply? Back to Game

52. It occurs when there is any price level above equilibrium. E For $500

53. What is a surplus of product? Back to Game