5 Written Questions
5 Matching Questions
- inferior good
- complementary goods
- diminishing marginal utility
- determinants of supply
- 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 offering goods and services for sale
- c a good for which, other things equal, an increase in income leads to a decrease in demand
- d the principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed
- e Factors such as input prices, productivity, and the legal-institutional environment that, if they change, shift the aggregate supply curve.
5 Multiple Choice Questions
- the ability and desire to purchase goods and services
- Goods for which demand goes up when income is higher and for which demand goes down when income is lower.
- consumers buy more of a good when its price decreases and less when its price increases
- the change in consumption resulting from a change in real income
5 True/False Questions
supply curve → a graph of the relationship between the price of a good and the quantity supplied
change in quantity demanded → 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.
equilibrium price → the quantity supplied and the quantity demanded at the equilibrium price
demand schedule → a table that shows the relationship between the price of a good and the quantity demanded
price celling → floor below which prices are not allowed to fall