5 Written questions
5 Matching questions
- normal good
- socially optimal quantity
- excess demand
- income effect
- a the change in consumption resulting from a change in real income
- b two goods for which an increase in the price of one leads to an increase in the demand for the other
- c when quantity demanded is more than quantity supplied
- d a good for which, other things equal, an increase in income leads to an increase in demand
- e The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
5 Multiple choice questions
- economic metaphor for unexploited gains from exchange
- a situation in which quantity demanded equals quantity supplied
- when consumers react to an increase in a good's price by consuming less of that good and more of other goods
- a good for which, other things equal, an increase in income leads to a decrease in demand
- the largest dollar amount the buyer would be willing to pay for a good
5 True/False questions
change in supply → A change in the quantity supplied of a good or service at every price; a shift of the supply curve to the left or right.
demand curve → a graph of the relationship between the price of a good and the quantity demanded
change in demand → a change in the quantity demanded of a good or service at every price; a shift of the demand curve to the left or right.
buyers surplus → the difference between the price recived by the seller and his or her reservation price
equilibrium price → a sensory system located in structures of the inner ear that registers the orientation of the head