NIU ECON 261: Macroeconomics Exam 1 (Chs. 1, 2, 4, 10, and 11) Latest Update

NIU ECON 261: Macroeconomics Exam 1
(Chs. 1, 2, 4, 10, and 11) Latest Update


How are demand and supply determined? - ANSWER As a group by Buyers and
Sellers

Price and Demand have what kind of relationship? - ANSWER Inverse; when one
rises, the other falls

What is the demand schedule? - ANSWER table that shows relationship between
price and demand

Market Demand - ANSWER SUM of all ind. demands for a good or service

Variable that can shift the demand curve: - ANSWER - Income
- Prices of related goods
- Tastes
- Expectations
- Number of buyers

Complements effect demand in what way? - ANSWER When the Price on one
rises, the demand for the other falls.

Expectations effect demand in what way? - ANSWER Expect increase in income,
current demand rises.
Expect increase in price, current demand rises.

If the number of buyers increases, - ANSWER market demand will also increase

Variables that can shift the supply curve - ANSWER - Input prices
- Technology
- Expectations about future
- Number of sellers

Supply and Input have what kind of relationship? - ANSWER Inverse; higher
input price = lower supply

Supply and Technology have what kind of relationship? - ANSWER twinsies;
advance in technology = higher supply