OpenStax Principles of Microeconomics Ch 3 Key Terms Demand and Supply
Revision Questions with Answers
ceteris paribus - correct answers other things being equal
complements - correct answers goods that are often used together so that consumption of one good
tends to enhance consumption of the other
consumer surplus - correct answers the extra benefit consumers receive from buying a good or service,
measured by what the individuals would have been willing to pay minus the amount that they actually
paid
deadweight loss - correct answers the loss in social surplus that occurs when a market produces an
inefficient quantity
demand - correct answers the relationship between price and the quantity demanded of a certain good
or service
demand curve - correct answers a graphic representation of the relationship between price and quantity
demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical
axis
demand schedule - correct answers a table that shows a range of prices for a certain good or service and
the quantity demanded at each price
equilibrium - correct answers the situation where quantity demanded is equal to the quantity supplied;
the combination of price and quantity where there is no economic pressure from surpluses or shortages
that would cause price or quantity to change
equilibrium price - correct answers the price where quantity demanded is equal to quantity supplied
equilibrium quantity - correct answers the quantity at which quantity demanded and quantity supplied
are equal for a certain price level
Revision Questions with Answers
ceteris paribus - correct answers other things being equal
complements - correct answers goods that are often used together so that consumption of one good
tends to enhance consumption of the other
consumer surplus - correct answers the extra benefit consumers receive from buying a good or service,
measured by what the individuals would have been willing to pay minus the amount that they actually
paid
deadweight loss - correct answers the loss in social surplus that occurs when a market produces an
inefficient quantity
demand - correct answers the relationship between price and the quantity demanded of a certain good
or service
demand curve - correct answers a graphic representation of the relationship between price and quantity
demanded of a certain good or service, with quantity on the horizontal axis and the price on the vertical
axis
demand schedule - correct answers a table that shows a range of prices for a certain good or service and
the quantity demanded at each price
equilibrium - correct answers the situation where quantity demanded is equal to the quantity supplied;
the combination of price and quantity where there is no economic pressure from surpluses or shortages
that would cause price or quantity to change
equilibrium price - correct answers the price where quantity demanded is equal to quantity supplied
equilibrium quantity - correct answers the quantity at which quantity demanded and quantity supplied
are equal for a certain price level
