chapter 3 Flashcards
in economics, the demand for a good refers to the amount of the good that people:
will buy at various prices.
a demand curve shows the relationship between price and ____ on a graph.
quality demanded
if an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that:
goods X and Y are complement goods
a drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the ____
supply curve to the right
a severe freeze has once again damaged the Florida orange crop. the impact on the market for orange juice will be a leftward shift of:
the supply curve
after widespread press reports about the dangers of contracting ‘mad cow disease’ by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:
a shift of the demand curve for beef to the left.
if the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. this is known as ______
excess demand
andy views beer and pizza as complements to one another. if the price of pizza decreases, economists would epect:
andy’s demand for beer to increase
economists refer to the relationship that a higher price leads to a lower quantity demanded as the ____
law of demand
a report surfaced lately that President Obama has given the order to federal agents to ‘round up’ farm workers that have illegally entered the U.S. and deport them. the impact of this order on the market for vegetables will be a leftward shift of:
the supply curve
which of the following would reduce the supply of microcomputers ?
higher wage rates for the workers that assemble the computers
____ are enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling.
price floors
any given demand or supply curve is based on the ceteris paribus assumption that ____
all else is held equal
when quantity demanded decreases in response to a change in price:
there is a movement up along the demand curve.
a supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and _____, shown on the horizontal axis
quantity
a change in price of a good or service typically causes ____ for that specific good or service.
a change along the supply curve
but nearly all supply curves share a basic similarity; the slope ____
up from left -> right
the demand schedule for a good:
indicates the quantities that will be purchased at alternative market prices.
_____ refers to the total number of units that are purchased at that price.
quantity demanded
the downward slope of the demand curve again illustrates the pattern that as ____ rises, the ____ decreases.
price, quality demanded
