Demand & Supply : 2/16/16 Flashcards Preview

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Flashcards in Demand & Supply : 2/16/16 Deck (49)
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1
Q

The forces of s_____ and d______ establish the p____ that best serves both producers and consumers.

A

Supply, demand, price

2
Q

D______ is the desire to have a good or service and the ability to pay for it.

A

Demand

3
Q

P___ is one of the major factors that influences demand.

A

Price

4
Q

The l__ __ d_____ states that when the price of a good or service falls, consumers will buy more of it.

A

Law of demand

5
Q

As the p____ of a good or service increases, consumers usually buy ___ of it.

A

Price, less

6
Q

Q______ d_________ and p____ have an i______ r__________.

A

Quantity demanded, price, inverse relationship

7
Q

A d_______ s_______ is a table that shows how much of a good or service an individual consumer is willing and able to purchase at each price in the market.

A

Demand schedule

8
Q

A m______ d______ s________ shows how much of a good or service all consumers are willing and able to buy at each price in a market.

A

Market demand schedule

9
Q

The ____-hand column of the table lists various _____ of a good/service.

A

Left, prices

10
Q

The ____-hand column shows the ________ ________ of the good/service at each price.

A

Right, quantity demanded

11
Q

A d_____ c____ is a graph that shows how much of a good or service an individual will buy at each price.

A

Demand curve

12
Q

The d_____ c_____ should slope d________ from the u____ ___ to the l_____ ____.

A

Demand curve, downward, upper left, lower right

13
Q

A m______ d_______ c_____ shows the data found in the market demand schedule.

A

Market demand curve

14
Q

A m_____ d_____ c_____ shows the sum of the information on the individual demand curves of all consumers in a market.

A

Market demand curve

15
Q

The v_______ axis displays p_____ and the h__________ axis displays q________ d_______.

A

Vertical, prices, horizontal, quantities demanded

16
Q

The l____ of d_________ m________ u_____ states that the marginal benefit of using each additional unit of a product during a given period will decline. That u______ is the satisfaction gained from the use of a good or service.

A

Law of diminishing marginal utility, utility

17
Q

Economists have identified two patterns of behavior as causes : the i______ e_____ and the s_________ e____.

A

Income effect, substitution effect

18
Q

The i_____ e_____ is the term used for a change in the amount of a product that a consumer will buy because purchasing power of his/her income changes.

A

Income effect

19
Q

The s____________ e____ is the pattern of behavior that occurs when consumers react to change in the price of a good or service by buying a substitute product.

A

Substitution effect

20
Q

A change in the amount of a product that consumers will buy because of a change in price is called a c_____ in the q______ d________.

A

Change in the quantity demanded

21
Q

Each change in q_______ d__________ is shown by a new p____ on the d_____ c____.

A

Quantity demanded, point, demand curve

22
Q

C_____ in demand is also called a s____ in demand because it actually shifts the position of the demand curve.

A

Change, shift

23
Q

Six factors can cause change in demand : i_____, m_____ s___, c_______ t______, c_______ e_________, s________ g____, and c____________ g_____.

A

Income, market size, consumer tastes, consumer expectations, substitute goods, complementary goods

24
Q

Changes in income also affect m_____ d______ c_____.

A

Market demand curves

25
Q

When the i______ of most consumers in a market rise or fall, the t_____ d______ in that market also usually rises or falls.

A

Incomes, total demand

26
Q

N_____ g_____ are goods that consumers demand more of when their incomes rise.

A

Normal goods

27
Q

I_______ g____ are goods that consumers demand less of when their incomes rise.

A

Inferior goods

28
Q

I______ g____ are used books and generic food products.

A

Inferior goods

29
Q

A_________ has a strong influence on consumer tastes.

A

Advertising

30
Q

Your expectations for the f_____ can affect your b_____ h____ today.

A

Future, buying habits

31
Q

Goods and services that can be used in places of other goods and services to satisfy consumer wants are called s__________.

A

Substitutes

32
Q

Economists use the term e________ of _______ to describe how responsive consumers are to price changes in the marketplace.

A

Elasticity of demand

33
Q

Demand is ______ when a change in price, either up or down, leads to a relatively larger change in the quantity demanded.

A

Elastic

34
Q

Demand is _______ when a change in price leads to a relatively smaller change in the quantity demanded.

A

Inelastic

35
Q

Elastic goods and services are often said to be p____ s________.

A

Price sensitive

36
Q

In the case of i______ demand, changes in price have little impact on the q______ d________.

A

Inelastic, quantity demanded

37
Q

Goods that have a larger number of s_________ fall into the e______ category.

A

Substitutes, elastic

38
Q

_______ though, is ________ because the quantity demanded remains relatively constant.

A

Insulin, inelastic

39
Q

The ______ demand curve has a steeper slope than the _______ demand curve does.

A

Inelastic, elastic

40
Q

Demand is said to be ___ ______ when the percentage change in price and quantity demanded are the same.

A

Unit elastic

41
Q

No good or service is ever really ___ ______.

A

Unit elastic

42
Q

Three things determine elasticity. : 1. S_______ g____ or s_____. 2. P_______ of i______. 3. N_______ vs l_______.

A

Substitute goods or services, proportion of income, necessities vs luxuries

43
Q

If there are no substitutes for a good or service, demand for it tends to be _______.

A

Inelastic

44
Q

The p________ of your i______ that you _____ on a good or service is another factor that affect _______.

A

Percentage, income, spend, elasticity

45
Q

At the same time, demand for products that cost little of your income tends to be _______.

A

Inelastic

46
Q

A n________ is something you must have, such as food or water.

A

Necessity

47
Q

The change in quantity demanded is smaller than the change in price, so demand is ______.

A

Inelastic

48
Q

A ______ is something that you desire but that is not essential to your life, such as a plasma television.

A

Luxury

49
Q

Demand for luxuries tends to be ______.

A

Elastic