AGEC 3503 Exam 1 definitions
questions with complete answers
Demand - correct answer ✔✔The _______ side of the model looks at the values that consumers
place on the good, which in turn determines how much of the good consumers will want to buy
at any given price.
supply - correct answer ✔✔The _____ side of the model is based on the costs that firms incur
to produce the good, which in turn determines how much they are willing to produce and sell at
any given price.
market equilibrium - correct answer ✔✔By considering demand and supply together, you can
find the
predicted equilibrium - correct answer ✔✔the price that clears the market, so that the
consumers want to buy the same quantity of the good that the producers want to sell
Demand - correct answer ✔✔refers to a relationship among the price of a good, the quantity
that consumers will demand and consume, and the value they place on consuming that good
questions with complete answers
Demand - correct answer ✔✔The _______ side of the model looks at the values that consumers
place on the good, which in turn determines how much of the good consumers will want to buy
at any given price.
supply - correct answer ✔✔The _____ side of the model is based on the costs that firms incur
to produce the good, which in turn determines how much they are willing to produce and sell at
any given price.
market equilibrium - correct answer ✔✔By considering demand and supply together, you can
find the
predicted equilibrium - correct answer ✔✔the price that clears the market, so that the
consumers want to buy the same quantity of the good that the producers want to sell
Demand - correct answer ✔✔refers to a relationship among the price of a good, the quantity
that consumers will demand and consume, and the value they place on consuming that good
