5 Written questions
5 Matching questions
- inferior good
- change in supply
- complementary goods
- change in quantity demanded
- a goods that are used together with others, usually demanded together. Price of one good goes up, demand for other goes down (gas/motor oil, tuition/textbooks)
- b the property of being an amount by which something is less than expected or required
- c 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.
- d a good for which, other things equal, an increase in income leads to a decrease in demand
- e a movement along the demand curve that occurs in response to a change in price
5 Multiple choice questions
- the quantity supplied and the quantity demanded at the equilibrium price
- the change in consumption resulting from a change in real income
- the principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed
- a table that shows the relationship between the price of a good and the quantity supplied
- maximum price that can be charged for goods and services, set by the government.
5 True/False questions
supply curve → a graph of the relationship between the price of a good and the quantity supplied
law of supply → Tendency of suppliers to offer more of a good at a higher price
price floor → maximum price that can be charged for goods and services, set by the government.
determinants of demand → Factors such as input prices, productivity, and the legal-institutional environment that, if they change, shift the aggregate supply curve.
equilibrium price → the quantity supplied and the quantity demanded at the equilibrium price