5 Written questions
5 Matching questions
- determinants of supply
- law of demand
- diminishing marginal utility
- price celling
- a consumers buy more of a good when its price decreases and less when its price increases
- b Factors such as input prices, productivity, and the legal-institutional environment that, if they change, shift the aggregate supply curve.
- c excess
- d the principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed
- e maximum price that can be charged for goods and services, set by the government.
5 Multiple choice questions
- when consumers react to an increase in a good's price by consuming less of that good and more of other goods
- Goods for which demand goes up when income is higher and for which demand goes down when income is lower.
- goods that can be used to replace the purchase of similar goods when prices rise
- floor below which prices are not allowed to fall
- 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.
5 True/False questions
equilibrium quantity → the quantity supplied and the quantity demanded at the equilibrium price
demand curve → a graph of the relationship between the price of a good and the quantity demanded
complementary goods → 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)
equilibrium price → the price that balances quantity supplied and quantity demanded
demand → offering goods and services for sale