Econ 201 Ch.3 Exam | Questions with 100% Correct
Answers | Verified | Latest Update 2026/2027
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Terms in this set (39)
The market for a good consists of all of the buyers and sellers of that good
Blank_____
A graph showing the relationship demand curve
between the quantity demanded and
the price is called a Blank_____
The numbers in the table below likely demand for
capture the daily Blank______ tennis
balls. Reason:
As the price of a product increases, the quantity
demanded decreases, while the quantity supplied
increases.
The change in the quantity substitution effect
demanded of a good that results
because buyers switch to or from Reason:
substitutes when the price of the The substitution effect captures the change in the
good changes is known as the quantity demanded of a good that results because
Blank______ of a price change. buyers switch to or from substitutes when the price
of the good changes.
What are traits of a free-market People decide which careers to pursue.
system?
, In economics, buyers and sellers a market
who trade a particular good or
service are referred to as Blank______
Suppose that as the price of coffee income effect
increases, consumers purchase less
coffee in part because they can no Reason:
longer afford to buy as much coffee The income effect captures the change in the
as they used to. This reduction in the quantity demanded of a good that results because
quantity of coffee demanded is a change in the price of a good changes the
known as the Blank______ of a price buyer's purchasing power.
change.
Which statements describe a It shows the relationship between price and the
demand curve? quantity of items demanded.
It falls from left to right on a graph of the goods
and services that consumers are willing to buy at
different prices at different times.
A buyer's reservation price is the largest dollar amount the buyer would be willing to
pay for a good.
correct
Reason:
A buyer's reservation price is the largest dollar
amount the buyer would be willing to pay for the
good
Suppose that as the price of pencils substitution effect
increases, people buy fewer pencils
and instead use pens. The resulting Reason:
reduction in the quantity of pencils The substitution effect captures the changes in the
demanded is known as the Blank______ quantity demanded of a good that results because
of a price change. buyers switch into or out of substitutes as the price
of the good changes.
Answers | Verified | Latest Update 2026/2027
Save
Terms in this set (39)
The market for a good consists of all of the buyers and sellers of that good
Blank_____
A graph showing the relationship demand curve
between the quantity demanded and
the price is called a Blank_____
The numbers in the table below likely demand for
capture the daily Blank______ tennis
balls. Reason:
As the price of a product increases, the quantity
demanded decreases, while the quantity supplied
increases.
The change in the quantity substitution effect
demanded of a good that results
because buyers switch to or from Reason:
substitutes when the price of the The substitution effect captures the change in the
good changes is known as the quantity demanded of a good that results because
Blank______ of a price change. buyers switch to or from substitutes when the price
of the good changes.
What are traits of a free-market People decide which careers to pursue.
system?
, In economics, buyers and sellers a market
who trade a particular good or
service are referred to as Blank______
Suppose that as the price of coffee income effect
increases, consumers purchase less
coffee in part because they can no Reason:
longer afford to buy as much coffee The income effect captures the change in the
as they used to. This reduction in the quantity demanded of a good that results because
quantity of coffee demanded is a change in the price of a good changes the
known as the Blank______ of a price buyer's purchasing power.
change.
Which statements describe a It shows the relationship between price and the
demand curve? quantity of items demanded.
It falls from left to right on a graph of the goods
and services that consumers are willing to buy at
different prices at different times.
A buyer's reservation price is the largest dollar amount the buyer would be willing to
pay for a good.
correct
Reason:
A buyer's reservation price is the largest dollar
amount the buyer would be willing to pay for the
good
Suppose that as the price of pencils substitution effect
increases, people buy fewer pencils
and instead use pens. The resulting Reason:
reduction in the quantity of pencils The substitution effect captures the changes in the
demanded is known as the Blank______ quantity demanded of a good that results because
of a price change. buyers switch into or out of substitutes as the price
of the good changes.
