Demand (3.1-1, 3.1-2,3.1-3,3.1-4) and Supply (3.2-1) Flashcards Preview

Econ 2106 > Demand (3.1-1, 3.1-2,3.1-3,3.1-4) and Supply (3.2-1) > Flashcards

Flashcards in Demand (3.1-1, 3.1-2,3.1-3,3.1-4) and Supply (3.2-1) Deck (65)
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1

Model of _ is the most important model in economics.

Market

2

The quantity of a good or service that households want (and have the means) to purchase in a given period of time is called _

Demand

3

The quantity of a good or service that firms want (and have the ability) to sell in a given period of time is called _

Supply

4

The market condition in which the interaction of buyers and sellers finds a particular price and quantity to be traded and from which there is no incentive to move is called_

Equilibrium

5

Demand describes the _ of households and answers the question "How much of a particular good or service to households purchase in a given period of time?". 

Behavior

6

Price of product, Complementary goods, Substitute goods, Income, Taste/Preferences, and Expectations are all _.

Factors that influence demand

7

To economists, "All other factors held constant" defines which Latin phrase?

Ceteris Paribus

8

As the price of a good or service increases, the quantity purchased generally_.

Decreases

9

When people are more willing to buy substitute products at a lower price than paying for the original product at a higher price, it is referred to as the_.

Subsitiution Effect

10

Two goods for which a decrease in the price of one leads to an increase in the demand for the other (and vice versa) are _ goods.

Complimentary

11

Two goods for which an increase in  the price of one good leads to an increase in the demand for the other are _ goods. 

Substitute

12

Any good for which demand increases as income increases is a _ good.

Normal

13

Any good for which demand decreases as income increases is a _ good. 

Inferior

14

A mathematical relationship that predicts the quantity of a good demanded as a function of each of the factors that influence consumer behavior is shown in a _.

Demand function

15

Quantity demanded depends upon all other _.

Factors (Income, Complimentary goods, Substitute goods, tates/preferences, price, expectations and purchasing power)

16

Tastes and preferences are a _ of demand, not the price and input of goods. 

Determinent

17

Ceteris Paribus (holding all things constant) is an _. 

Assumption

18

The graphical relationship between the price of a good and the quantity demanded ceteris paribus.

Demand curve

19

A set of data showing the relationship between price and quantity demanded, ceteris paribus.

Demand schedule

20

A _ is used to determine how price and quantity are set in a market where buyers and sellers are interacting. 

Demand curve

21

In economics, anytime you are drawing a graph, carefully label the _ .

Axes

22

On a graph, all combinations of variables on the x and y axes are _.

Possible

23

We can represent _ _ on a graph with what economics call a demand curve

Consumer behavior

24

A demand curve is almost always _ sloping. 

downward

25

As the price of a good or service increases, the quantity purchased generally decreases, defining the ___.

Law of demand 

26

Two reasons behind the Law of Demand are the _ effect and the _ effect.

Income and Substitution

27

If price changes (increases) you just move _ the demand curve

up

28

Once there is a new __ , you have to draw a new demand curve

demand schedule

29

Changes cause us to have to _ the demand curve

shift

30

When income increases in a household, they may purchase more of a product if it is a __.

normal good