5 Written questions
5 Matching questions
- change in supply
- normal goods
- equilibrium price
- income effect
- a excess
- b the change in consumption resulting from a change in real income
- 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 the price that balances quantity supplied and quantity demanded
- e Goods for which demand goes up when income is higher and for which demand goes down when income is lower.
5 Multiple choice questions
- the property of being an amount by which something is less than expected or required
- the quantity supplied and the quantity demanded at the equilibrium price
- factors other than price that determine the quantities demanded of a good or service
- maximum price that can be charged for goods and services, set by the government.
- goods that can be used to replace the purchase of similar goods when prices rise
5 True/False questions
supply → excess
determinants of supply → Factors such as input prices, productivity, and the legal-institutional environment that, if they change, shift the aggregate supply curve.
substitution effect → when consumers react to an increase in a good's price by consuming less of that good and more of other goods
law of supply → Tendency of suppliers to offer more of a good at a higher price
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)