ECN 328 Exam 1 || A+ Certified.
What influences demand correct answers -consumer income
-prices of complement goods
-prices of substitute goods
-the number of consumers
As more sellers enter a market correct answers the supply of the product will increase
What influences supply correct answers -price
-suppliers' cost of production
-number of sellers
-sellers' outside options
Firms respond to high prices for their product by correct answers offering a larger quantity for
sale
What causes the demand curve to shift to the right correct answers -income of consumers
increased
-number of buyers in the market increased
An increase in quantity supplied could be indicated by correct answers movement up and along
supply curve S1
Complement goods correct answers when price of one good goes up it causes the demand for the
complement good to fall
-purchased and used in combination with another good
Substitute goods correct answers as one increases in price the demand for the other rises
, -can be used in place of another good
Which of the following will not cause demand for apples to increase or decrease correct answers
a reduction in the price of apples
To test whether the law of demand holds, one should correct answers look at the sign on the
Price variable and conclude that the law of demand holds if it is negative at the market price
A demand curve correct answers shows the relationships between a product's price and the
number of units consumers want to buy at each price, assuming there are no changes in other
factors affecting demand
Inverse demand curve correct answers demand curve written in the form of price as a function of
quantity demanded
Changes in quantity demanded correct answers movement along the demand curve that occurs as
a result of a change in the good's price
Change in demand correct answers shift of the entire demand curve caused by a change in a
determinant of demand other than the good's own price
In the standard supply equation, one expects the sign on an input (the partial derivative of
quantity supplied with respect to input price) to be correct answers negative
Supply curve correct answers relationship between the quantity supplied of a good and the
good's price, holding all other factors constant
Inverse supply curve correct answers supply curve written in the form of price as a function
quantity supplied
What influences demand correct answers -consumer income
-prices of complement goods
-prices of substitute goods
-the number of consumers
As more sellers enter a market correct answers the supply of the product will increase
What influences supply correct answers -price
-suppliers' cost of production
-number of sellers
-sellers' outside options
Firms respond to high prices for their product by correct answers offering a larger quantity for
sale
What causes the demand curve to shift to the right correct answers -income of consumers
increased
-number of buyers in the market increased
An increase in quantity supplied could be indicated by correct answers movement up and along
supply curve S1
Complement goods correct answers when price of one good goes up it causes the demand for the
complement good to fall
-purchased and used in combination with another good
Substitute goods correct answers as one increases in price the demand for the other rises
, -can be used in place of another good
Which of the following will not cause demand for apples to increase or decrease correct answers
a reduction in the price of apples
To test whether the law of demand holds, one should correct answers look at the sign on the
Price variable and conclude that the law of demand holds if it is negative at the market price
A demand curve correct answers shows the relationships between a product's price and the
number of units consumers want to buy at each price, assuming there are no changes in other
factors affecting demand
Inverse demand curve correct answers demand curve written in the form of price as a function of
quantity demanded
Changes in quantity demanded correct answers movement along the demand curve that occurs as
a result of a change in the good's price
Change in demand correct answers shift of the entire demand curve caused by a change in a
determinant of demand other than the good's own price
In the standard supply equation, one expects the sign on an input (the partial derivative of
quantity supplied with respect to input price) to be correct answers negative
Supply curve correct answers relationship between the quantity supplied of a good and the
good's price, holding all other factors constant
Inverse supply curve correct answers supply curve written in the form of price as a function
quantity supplied
