ECO 201 Exam 1 BCTC (TAHREEM)
QUESTIONS AND ANSWERS
100% PASS
Market - ✔✔a group of buyers and sellers of a particular good or service
Competitive market - ✔✔a market with many buyers and sellers trading identical
products so that each buyer and seller is a price taker
Quantity demanded - ✔✔the amount of a good that buyers are willing and able to
purchase
Law of demand - ✔✔the claim that, other things being equal, the quantity demanded of
a good falls when the price of the good rises
Demand schedule - ✔✔a table that shows the relationship between the price of a good
and the quantity demanded
Demand curve - ✔✔a graph of the relationship between the price of a good and the
quantity demanded
Normal good - ✔✔a good for which, other things equal, an increase in income leads to
an increase in demand
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, Inferior good - ✔✔a good for which, other things equal, an increase in income leads to a
decrease in demand
Substitutes - ✔✔two goods for which an increase in the price of one leads to an increase
in the demand for the other
Complements - ✔✔two goods for which an increase in the price of one leads to a
decrease in the demand for the other
Quantity supplied - ✔✔the amount of a good that sellers are willing and able to sell
Law of Supply - ✔✔the claim that, other things being equal, the quantity supplied of a
good rises when the price of the good rises
Supply schedule - ✔✔a table that shows the relationship between the price of a good
and the quantity supplied
Supply curve - ✔✔a graph of the relationship between the price of a good and the
quantity supplied
Equilibrium - ✔✔a situation in which the market price has reached the level at which
quantity supplied equals quantity demanded
Equilibrium price - ✔✔the price that balances quantity supplied and quantity
demanded
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
QUESTIONS AND ANSWERS
100% PASS
Market - ✔✔a group of buyers and sellers of a particular good or service
Competitive market - ✔✔a market with many buyers and sellers trading identical
products so that each buyer and seller is a price taker
Quantity demanded - ✔✔the amount of a good that buyers are willing and able to
purchase
Law of demand - ✔✔the claim that, other things being equal, the quantity demanded of
a good falls when the price of the good rises
Demand schedule - ✔✔a table that shows the relationship between the price of a good
and the quantity demanded
Demand curve - ✔✔a graph of the relationship between the price of a good and the
quantity demanded
Normal good - ✔✔a good for which, other things equal, an increase in income leads to
an increase in demand
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
, Inferior good - ✔✔a good for which, other things equal, an increase in income leads to a
decrease in demand
Substitutes - ✔✔two goods for which an increase in the price of one leads to an increase
in the demand for the other
Complements - ✔✔two goods for which an increase in the price of one leads to a
decrease in the demand for the other
Quantity supplied - ✔✔the amount of a good that sellers are willing and able to sell
Law of Supply - ✔✔the claim that, other things being equal, the quantity supplied of a
good rises when the price of the good rises
Supply schedule - ✔✔a table that shows the relationship between the price of a good
and the quantity supplied
Supply curve - ✔✔a graph of the relationship between the price of a good and the
quantity supplied
Equilibrium - ✔✔a situation in which the market price has reached the level at which
quantity supplied equals quantity demanded
Equilibrium price - ✔✔the price that balances quantity supplied and quantity
demanded
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
