ECON 1000 Study Guide - Quiz Guide: Market Power, Economic Equilibrium, Demand Curve

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ECON 1000 Full Course Notes

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A table that shows the relationship between the price of a good and the quantity demanded: example: An increase in income shifts d curves for inferior goods to the left. : demand curve shifters: prices of, two goods are substitutes if an increase in the price of one causes an increase in. Related goods demand for the other: example: pizza and hamburgers. Related goods for the other: example: computers and software. If price of computers rises, people buy fewer computers, and therefore less software. The atki(cid:374)s diet (cid:271)e(cid:272)a(cid:373)e popula(cid:396) i(cid:374) the "90s, caused an increase in demand for eggs, shifted the egg demand curve to the right: demand curve shifters: expectations, e(cid:454)pe(cid:272)tatio(cid:374)s affe(cid:272)t (cid:272)o(cid:374)su(cid:373)e(cid:396)s" (cid:271)u(cid:455)i(cid:374)g de(cid:272)isio(cid:374)s, examples: If people expect their incomes to rise, their demand for meals at expensive restaurants may increase now. If the economy turns bad and people worry about their future job security, demand for new autos may fall now: summary: variables that affect demand.

Related Questions

1. Markets and competition In a perfectly competitive market, all producers sell (perfectly identical/different) goods or services. Additionally, there are (few,many) buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price (takers,makers)

True or False: The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets.

1. In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers.

b. sellers.

c. both buyers and sellers.

d. None of the above is correct.

2. Which of the following statements is correct?

a. Buyers determine supply and sellers determine demand.

b. Buyers determine demand and sellers determine supply.

c. Buyers determine both demand and supply

d. Sellers determine both demand and supply

3. The demand for a good or service is determined by

a. those who buy the good or service

b. the government.

c. those who sell the good or service.

d. both those who buy and those who sell the good or service.

4. An increase in supply is represented by

a. a movement downward and to the left along a supply curve.

b. a movement upward and to the right along a supply curve.

c. a rightward shift of a supply curve.

d. a leftward shift of a supply curve

ceruleanseal203

Paraphrase each of the following statement and provide two illustrative examples.

1. The price falls when there is a surplus and rises when there is a shortage

Paraphrase

Example 1

Example 2

2. Not all markets equilibrate at the same speed.

Paraphrase

Example 1

Example 2

3. The maximum price that buyers are willing to pay for a good and the minimum price sellers are willing to accept for the good will help determine whether trade takes place between buyers and sellers.

Paraphrase

Example 1

Example 2

4. Equilibrium price and quantity are determined by supply and demand.

Paraphrase

Example 1

Example 2

ECON 1000 Study Guide - Quiz Guide: Market Power, Economic Equilibrium, Demand Curve

ECON 1000 Full Course Notes

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