When we know the quantity of a product that buyers wish to purchase at each possible price, we know:
Supply is the quantity of a good sellers wish to sell each time the market opens.
Supply is the ________ of a good sellers wish to sell at each possible _____.
The equilibrium price clears the market; it is the price at which:
|A)||Everything is sold.|
|B)||Buyers spend all their money.|
|C)||Quantity demanded equals quantity supplied.|
|D)||Excess demand is zero.|
|E)||c and d.|
Excess supply exists when the quantity supplied exceeds the quantity demanded at the ruling price.
The demand curve shows the relation between _____ and ________, holding other things constant.
When a market is in equilibrium:
|A)||Quantity demanded equals quantity supplied.|
|B)||Excess demand and excess supply are zero.|
|C)||The market is cleared by the equilibrium price.|
|D)||All of the above|
________ and ________ do not directly affect the demand curve.
|A)||the price of related goods, consumer incomes|
|B)||consumer incomes, tastes|
|C)||the costs of production, bank opening hours|
|D)||the price of related goods, preferences|
A change in price can cause a shift of a demand curve.
A demand curve can shift only because of changing:
|B)||prices of related goods|
|D)||all of the above|
A supply curve is only directly affected by:
|D)||all of the above|
An increase in price will cause a supply curve to shift to the left.
If a price increase of good A increases the quantity demanded of good B, then good B is a:
An increase in consumer income will increase demand for a _______ but decrease demand for a _________.
|A)||substitute good, inferior good|
|B)||normal good, inferior good|
|C)||inferior good, normal good|
|D)||normal good, complementary good|
Normally, 'holidays abroad' can be regarded as a:
Supermarket low price own-brands can normally be regarded as inferior goods.
______ can be regarded as a substitute for _________.
Price controls are government rules or laws that forbid:
|A)||the adjustment of prices to clear markets.|
|B)||the adjustment of demand to clear markets.|
|C)||the adjustment of supply to clear markets.|
|D)||the existence of markets.|
A floor price that is set above the equilibrium market clearing price will lead to:
Price ceilings are imposed to increase the price above the free market equilibrium price.