MGEB02H3 Midterm: Midterm Review Ch1-4

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burgundytermite691

7 Oct 2014

School

UTSC

Department

Economics for Management Studies

Course

MGEB02H3

Professor

A.Mazaheri

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Document Summary

The basis of supply and demand. Increase in price has only a small effect on qd in sr. People may drive less, but they will not change the kinds of cars they"re driving overnight. In lr, because they will shift to smaller and more- fuel efficient cars, effect of the price increase will be larger. For some foods & services, sr supply is completely inelastic: rental housing in most cities. In very sr, there"s only a fixed # of rental units; this an increase in demand only puses rents up. In lr, without rent controls, higher rents provide incentive to renovate existing buildings & contrast new ones => qs increases. Secondary supply of metals: the supply from scrap metal, which is often melted down & refabricated. If price increases for copper, there is a greater incentive to convert scrap copper into new supply. Indifference map: set of indifference curves that described person"s preferences.

Related Questions

6. The primary difference between a change in supply and a change in the quantity supplied is that: A) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve. B) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. C) a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply. D) a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

The primary difference between a change in supply and a change in the quantity supplied is that:

A) a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.

B) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.

C) a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply.

D) a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

grayspider353

The market demand curve

a. slopes upward.

b. is found by vertically adding the individual demand curves.

c. represents the sum of the quantities demanded by all the buyers at each price of the good.

d. represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good.

When we move along a given demand curve,

all nonprice determinants of demand are held constant.

only price is held constant.

all determinants of quantity demanded are held constant.

d. income and price are held constant.

When the price of a good or service changes,

	a.	there is a movement along a given demand curve.
	b.	the demand curve shifts in the opposite direction.
	c.	the supply curve shifts in the opposite direction.
	d.	the demand curve shifts in the same direction.

MGEB02H3 Midterm: Midterm Review Ch1-4

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