Flashcards in Ch 3 Quizes Deck (13):
Describe a market system:
It is a system that allows buyers and sellers to interact with one another.
As a result of a decrease in the price of MP3 music, consumers download more songs and buy fewer CDs. This is an illustration of:
The substitution effect.
A decrease in demand is shown graphically as a:
Shift of the demand curve to the left.
A decrease in supply, holding demand constant, will cause:
Higher prices and a smaller quantity sold.
An increase in demand and a decrease in supply will:
Increase price and affect the equilibrium quantity in an indeterminate way.
A black market could arise as a result of:
A legal price ceiling below the equilibrium price.
A demand curve shows the relationship between:
price and quantity demanded.
If supply increases and demand decreases, equilibrium price will rise, fall, or remain unchanged?
One can say with certainty that equilibrium price will decline when supply:
Increases and demand decreases.
The satisfaction or pleasure one gets from consuming a good or service is:
If total utility is increasing, then marginal utility:
The marginal utility of a second copy of today's newspaper taken from a newspaper vending machine is:
Close to zero.