5 Written questions
5 Matching questions
- total surplus
- supply curve
- change in quantity demand
- socially optimal quantity
- change in demand
- a 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.
- b The difference between the buyer's reservation price and the seller's reservation price
- c a graph of the relationship between the price of a good and the quantity supplied
- d The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
- e A change in price causes change in the number of items demanded
5 Multiple choice questions
- a good for which, other things equal, an increase in income leads to a decrease in demand
- two goods that are bought and used together
- the smallest amount for which a seller would be willing to sell am additional unit generally equal to the marginal cost
- when quantity demanded is more than quantity supplied
- the price that balances quantity supplied and quantity demanded
5 True/False questions
substitution effect → two goods for which an increase in the price of one leads to an increase in the demand for the other
change in the quantity supplied → A change in price causes change in the number of items demanded
market → the world of commercial activity where goods and services are bought and sold
cash on the table → 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.
price ceiling → when quantity demanded is more than quantity supplied