ECON 110 ZIRLOTT TEST 1
demand for a(n) _________ good is positively related to income -
ANSWERS--Normal Good
-(increase in income causes increase in quantity demanded at each
price, shifts D curve to the right)
demand for a(n) ___________________ good is negatively related to
income. - ANSWERS--Inferior Good
-(increase in income shifts D curves for inferior goods to the left)
substitute - ANSWERS-of an increase in the price of one causes and
increase in demand for the other
crest and colgate, coke and pepsi, laptops and computers, butter and
margarine, CDs and music downloads -> what are these examples of?
- ANSWERS-substitutes
complements - ANSWERS-if an increase in the price of one causes a
fall in demand for the other
computer and software, college tuition and textbooks, bagels and
cream cheese, pb and jelly, hot dogs and buns-> what are these
examples of? - ANSWERS-complements
, quantity supplied - ANSWERS-of any good is the amount that sellers
are willing and able to sell at a *specific* price. QS is a point on the
supply curve.
supply curve - ANSWERS-a set of various quantities supplied (QS) at
corresponding prices
Law of Supply - ANSWERS-the claim that the quantity supplied of a
good rises when the price of the good rises, other things equal
(SAME)
change in supply - ANSWERS-a shift in the S curve occurs when a
*non-price determinant of supply changes* (like technology or costs)
change in the quantity supplied - ANSWERS-a movement along a
fixed S curve occurs when P changes
What are the Determinants of Supply? (SITE) - ANSWERS--input
prices
-technology
-# of sellers
-expectations
Input Prices: how a change in them will shift the supply curve?
(determinant of supply) - ANSWERS-a fall in input prices makes
production more profitable at each output price, so firms supply a
demand for a(n) _________ good is positively related to income -
ANSWERS--Normal Good
-(increase in income causes increase in quantity demanded at each
price, shifts D curve to the right)
demand for a(n) ___________________ good is negatively related to
income. - ANSWERS--Inferior Good
-(increase in income shifts D curves for inferior goods to the left)
substitute - ANSWERS-of an increase in the price of one causes and
increase in demand for the other
crest and colgate, coke and pepsi, laptops and computers, butter and
margarine, CDs and music downloads -> what are these examples of?
- ANSWERS-substitutes
complements - ANSWERS-if an increase in the price of one causes a
fall in demand for the other
computer and software, college tuition and textbooks, bagels and
cream cheese, pb and jelly, hot dogs and buns-> what are these
examples of? - ANSWERS-complements
, quantity supplied - ANSWERS-of any good is the amount that sellers
are willing and able to sell at a *specific* price. QS is a point on the
supply curve.
supply curve - ANSWERS-a set of various quantities supplied (QS) at
corresponding prices
Law of Supply - ANSWERS-the claim that the quantity supplied of a
good rises when the price of the good rises, other things equal
(SAME)
change in supply - ANSWERS-a shift in the S curve occurs when a
*non-price determinant of supply changes* (like technology or costs)
change in the quantity supplied - ANSWERS-a movement along a
fixed S curve occurs when P changes
What are the Determinants of Supply? (SITE) - ANSWERS--input
prices
-technology
-# of sellers
-expectations
Input Prices: how a change in them will shift the supply curve?
(determinant of supply) - ANSWERS-a fall in input prices makes
production more profitable at each output price, so firms supply a
