QMB 3003 Underwood Exam 1 Questions and Answers.docx

QMB 3003 Underwood Exam 1
Questions and Answers
Supply -
correct answer ✅the quantity of a certain good that producers are
willing
to provide


Demand -
correct answer ✅the quantity of the good that consumers are
willing to buy


Law of Demand -
correct answer ✅if all other factors remain equal, as the price of
an
item increases, consumers are less likely to buy an increasingly
expensive item, and so the
demand for the item decreases (Price + Demand inverse)


Law of Supply -
correct answer ✅states that as the
price of an item increases, producers are more likely to see a profit
in selling the item, and
so the supply of the item increase

, QMB 3003 Underwood Exam 1
Questions and Answers

Equilibrium quantity -
correct answer ✅when the amount demanded equals the quantity
supplied


Shortage -
correct answer ✅Quantity demanded is greater than quantity
supplied


Surplus -
correct answer ✅Quantity supplied is greater than quantity
demanded


Equilibrium -
correct answer ✅when supply and demand are equal


Equilibrium price -
correct answer ✅the price that balances quantity supplied and
quantity demanded


Breakeven quantity -
correct answer ✅When revenue R(x) = cost C(x)