Chapter 4 Flashcards
(18 cards)
What determines the price and the quantity produced of most goods
The interaction of supply and demand
When a consumer is able an willing to buy a good it service, they create which of the following
Demand
What are inferior goods
Goods for which the demand falls when income rises
How is the future price related to current demand
If the price is expected to rise the current demand will rise
What determines how to change in prices will affect total revenue for the company
Elasticity of demand
What kind of system is the United States economy based on
Market
Ceteris paribus, or all other things held constant, is an assumption that has which of the following effects on the demand schedule
It takes only process into account
What shows the quantities of products demanded at each price by all consumers in the market
A market demand schedule
What kind of table lists the quantity of a good that a person will buy at different prices
Demand schedule
What is a basic principle of the Law of demand
When a goods price is lower, people will buy more of it
How is the current demand for a good related to its future price
If the price is expected to drop current demand will fall
Which of the following is a good that might not be bought when prices rise
Luxury
What kind of changes would be expected in the demand of a country that had a growing population
A rise in the demand for the shelter
What Is a company’s total revenue
The amount a company receives or selling its goods
When prices rise, which of the following happens to income
It buys less
Which of the following goods would be likely to be bought in the same quantity even if it doubled in price
Pencils
Demand for movies rentals is highly elastic. A video store that raises the price of rental will…
Possibly gain or lose revenue
When movie rentals were 2.95, sara rented 10 movies a month the price in increase by .50$ she decided to rent fewer movies per month when the price went up by 1 more 1$ she decided to cut it in half what is her quantity demanded by month at the current price
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