Economics Unit 4
Terms in this set (30)
What is meant by the phrase "markets talk"?
Markets reflect the thoughts and feelings of buyers and sellers.
If producers expect higher prices in the future, they may
Graph that shows the quantity demanded at all possible prices at a given time
In a market economy, a low price is a signal for
producers to produce less and buyers to buy more
cost that a business incurs even if the plant is not producing at the present time
economic principle stating that the quantity supplied varies directly with its price
Law of Supply
which of the following would cause change in quantity demanded of a product?
decreasing the price of the product
motivation and technology
influence levels of productivity
way in which quantity supplied changes in response to a change in price
what is the best description of the relationship between a demand schedule and a demand curve?
represent the same info in different ways
the elasticity of demand is determined, in part, by the question
Could something else work just as well?
maximum legal price that can be charged
the demand for an economic product varies inversely with its price
law of demand
demand is based on consumer purchase, whereas supply is based on
producers offering products for sale
extra cost of producing on additional unit of output
which of the following statements does NOT describe the demand curve?
it shows the demand for a product over time rather than at a given point in time
all of the following must exist in order for there to be demand except
producers to sell a product
products that can be used in place of other products
a government payment to an individual business
if the quantity supplied changes little in response to a price, supply is
situation in which the quantity supplied is greater than the quantity demanded
an increase in the price of wombles causes a decrease in the demand of widgets. The two products are
The ___ effect is the change in the quantity demanded due to a change in the relative price of the product
As a consumer, if the price of apples doubles, and your salary remains the same, you would probably
buy fewer apples
which of the following factors might cause an increase of supply?
introduction of new technology
links between producers and consumers
if the price of a product falls, producers will generally
offer less for sale
amount that producers bring to market at any one price
what is the equilibrium price in a market?
price that creates neither a surplus or shortage
situation in which prices are relatively stable and the quantity supplied is equal to the quantity demanded