Basic Microeconomics Concepts( 1) questions with appropriate answers

Basic Microeconomics Concepts 1)




Supply - answersThe amount of goods available

demand - answersConsumer willingness and ability to buy products

Equilibrium - answersa state in which opposing forces or influences are balanced.

elastic demand curve - answersA demand or supply curve that indicates that the
quantity demanded or supplied responds to price changes in a greater than proportional
manner.

inelastic demand/supply curve - answersAn demand or supply curve is one where a
given percentage change in price will cause a smaller percentage change in quantity
demanded or supplied.

substitute - answersA substitute, or substitutable good, in economics and consumer
theory refers to a product or service that consumers see as essentially the same or
similar-enough to another product.

complements - answerstwo goods that are bought and used together

Economics - answersStudy of how societies allocate scarce resources among
competing ends.

positive economics - answersthe branch of economic analysis that describes the way
the economy actually works

normative economics - answersthe branch of economics that addresses the way things
should be

Scarcity - answersoccurs when the amount people desire exceeds the amount available