ECON 705 Module 1 Exam Questions and Correct Answers 100% Guaranteed Success

ECON 705 Module 1 Exam Questions and Correct Answers 100% Guaranteed Success demand - Answers The quantity of a good or service that buyers are willing and able to buy at all possible prices during a certain time period. two components of supply - Answers a supplier's willingness to produce and ability to produce and sell. Law of supply states as price of good rises - Answers suppliers will make more. How a change in the price of a good or service will affect the quantity supplied of that good or service. Law of supply describes the behavior of - Answers sellers The upward slope of a supply curve means that there is a - Answers direct (or positive) relationship between price and the quantity supplied On a supply curve, When price increases - Answers the quantity supplied increases, and when price decreases, the quantity supplied decreases. supply - Answers The quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period. State the law of demand - Answers As the price of a good or service rises, the quantity demanded of that good or service falls. Likewise, as the price of a good or service falls, the quantity demanded of that good or service rises. Define the law of supply - Answers As the price of a good or service rises, the quantity supplied of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls. Demand curve is a downward sloping line because - Answers of the inverse relationship between price and quantity demanded With a decrease in demand due to external factors - Answers the demand curve shifts left. When demand is less, the demand curve shifts left. With an increase in demand due to external market factors - Answers the demand curve shifts to the right What is considered a "normal" good by economists? - Answers A good for which demand increases as income increases and demand decreases as income decreases. A decrease in incomes would cause the demand for a normal good to - Answers decrease, shifting the demand curve to the left. What is the difference between the quantity demanded and the demand curve? - Answers quantity demanded changes as a result from a change in price. A change in the quantity demanded is illustrated by movement along the demand curve from one point to another. A change in the demand for a good or service changes not because the price of the good changes, but because something else in the market changes. A change in demand is illustrated by shifting the demand curve left or right. What is the difference between the quantity supplied and the supply curve? - Answers A change in the quantity supplied only occurs due to price, is illustrated by movement along the supply curve from one point to another. A change in supply, which is caused when something in the market for a good or service changes, is illustrated by a shift in the supply curve to the left or right. A change in price results in movement along the - Answers demand curve from one point to another and is called a change in the quantity demanded.