Kent Zirlott Econ 110 Final Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Terms in this set (102)
• Market A group of buyers and sellers of a particular good
or service.
• Competitive Market Market in which there are many buyers and many
sellers so that each has a negligible impact on the
market price.
• Quantity Demanded The amount of a good that buyers are willing and
able to purchase.
• Law of Demand The claim that, other things being equal, the
quantity demanded of a good falls when the price
of a good rises.
• Demand Schedule A table that shows the relationship between the
price of a good and the quantity demanded.
• Demand Curve A graph of the relationship between the price of a
good and the quantity demanded.
• Normal Good A good for which an increase in income leads to an
increase in demands.
, • Inferior Good A good for which an increase in income leads to a
decrease in demand.
• Substitutes Two goods for which an increase in the price of
one leads to a increase in the demand for the
other.
• Complements Two goods for which an increase in the price of
one leads to a decrease in the demand for the
other.
• Quantity Supplied The amount of a good that sellers are willing and
able to sell.
• Law of Supply The quantity supplied of a good rises when the
price of the good rises.
• Supply schedule A table that shows the relationship between the
price of a good and the quantity supplied.
• Supply Curve A graph of the relationship between the price of a
good and the quantity supplied.
• Equilibrium A situation in which the market price has reached
the level at which quantity supplied equals quantity
demanded.
• Equilibrium Price Price that balances quantity supplied and quantity
demanded.
• Equilibrium Quantity Quantity supplied and demanded at the
equilibrium price.
QUESTIONS AND CORRECT ANSWERS
Terms in this set (102)
• Market A group of buyers and sellers of a particular good
or service.
• Competitive Market Market in which there are many buyers and many
sellers so that each has a negligible impact on the
market price.
• Quantity Demanded The amount of a good that buyers are willing and
able to purchase.
• Law of Demand The claim that, other things being equal, the
quantity demanded of a good falls when the price
of a good rises.
• Demand Schedule A table that shows the relationship between the
price of a good and the quantity demanded.
• Demand Curve A graph of the relationship between the price of a
good and the quantity demanded.
• Normal Good A good for which an increase in income leads to an
increase in demands.
, • Inferior Good A good for which an increase in income leads to a
decrease in demand.
• Substitutes Two goods for which an increase in the price of
one leads to a increase in the demand for the
other.
• Complements Two goods for which an increase in the price of
one leads to a decrease in the demand for the
other.
• Quantity Supplied The amount of a good that sellers are willing and
able to sell.
• Law of Supply The quantity supplied of a good rises when the
price of the good rises.
• Supply schedule A table that shows the relationship between the
price of a good and the quantity supplied.
• Supply Curve A graph of the relationship between the price of a
good and the quantity supplied.
• Equilibrium A situation in which the market price has reached
the level at which quantity supplied equals quantity
demanded.
• Equilibrium Price Price that balances quantity supplied and quantity
demanded.
• Equilibrium Quantity Quantity supplied and demanded at the
equilibrium price.
