ECON 111 Mary Pettit SIUE EXAM 2
questions well answered
Non price determinants of demand - correct answer ✔✔Demand Shifters
Consumer Tasts and preferences
Income
Superior good/Normal good - correct answer ✔✔Good you will buy more of as your income
rises.
Inferior good - correct answer ✔✔Goods you will buy more of as your income goes down.
Complementary good - correct answer ✔✔increase in the price of one good causes a decreases
in the demand for the other good.
Substitute goods - correct answer ✔✔Increase in the price of one good causes an increase in
demand for the other good.
number of buyers in the market - correct answer ✔✔more buyers = increase in demand
Few buyers = decrease in demand
Expectations - correct answer ✔✔Future prices, income, tastes and preferences
Supply Schedule - correct answer ✔✔Shows the quantities of a good that the producers are
willing and able to produce at various prices out of a set of all possible prices over a specified
period of time.
, What happens to quantity supplied as price goes down? - correct answer ✔✔goes down
What happens to quantity supplied as price goes up? - correct answer ✔✔Goes up
Law of supply - correct answer ✔✔There will always be a direct or positive relationship
between price and quantity supplied.
A change in quantity supplied - correct answer ✔✔move along a supply curve as price
changes....ceterus peribus
A change in supply - correct answer ✔✔shift or movement of the entire curve.
Rightward shift - correct answer ✔✔increase (More is supplied at all possible prices)
Leftward Shift - correct answer ✔✔Decrease (Less is supplied at all possible prices)
Non- price determinants of suppy - correct answer ✔✔Cost of inputs, technology, number of
producers in the market, prices of related goods, government policies, expectations
Cost of inputs - correct answer ✔✔Factor payments- what you use to produce goods or
services.
As cost increases - correct answer ✔✔supply decreases
As Cost decreases - correct answer ✔✔Supply increases
questions well answered
Non price determinants of demand - correct answer ✔✔Demand Shifters
Consumer Tasts and preferences
Income
Superior good/Normal good - correct answer ✔✔Good you will buy more of as your income
rises.
Inferior good - correct answer ✔✔Goods you will buy more of as your income goes down.
Complementary good - correct answer ✔✔increase in the price of one good causes a decreases
in the demand for the other good.
Substitute goods - correct answer ✔✔Increase in the price of one good causes an increase in
demand for the other good.
number of buyers in the market - correct answer ✔✔more buyers = increase in demand
Few buyers = decrease in demand
Expectations - correct answer ✔✔Future prices, income, tastes and preferences
Supply Schedule - correct answer ✔✔Shows the quantities of a good that the producers are
willing and able to produce at various prices out of a set of all possible prices over a specified
period of time.
, What happens to quantity supplied as price goes down? - correct answer ✔✔goes down
What happens to quantity supplied as price goes up? - correct answer ✔✔Goes up
Law of supply - correct answer ✔✔There will always be a direct or positive relationship
between price and quantity supplied.
A change in quantity supplied - correct answer ✔✔move along a supply curve as price
changes....ceterus peribus
A change in supply - correct answer ✔✔shift or movement of the entire curve.
Rightward shift - correct answer ✔✔increase (More is supplied at all possible prices)
Leftward Shift - correct answer ✔✔Decrease (Less is supplied at all possible prices)
Non- price determinants of suppy - correct answer ✔✔Cost of inputs, technology, number of
producers in the market, prices of related goods, government policies, expectations
Cost of inputs - correct answer ✔✔Factor payments- what you use to produce goods or
services.
As cost increases - correct answer ✔✔supply decreases
As Cost decreases - correct answer ✔✔Supply increases
