LSUS MBA 701 EXAM 1 WITH ALL CORRECT & 100% VERIFIED
ANSWERS| LATEST UPDATE|ALREADY GRADED A+|JUST RELEASED
1. · As the price of goods or services goes up, the quantity Law of
Demand
demanded goes down & vice versa.
· Negative/inverse relationship between the price &
quantity demanded.
2. When the price of goods or services goes up, the quan- Law of
Supply
tity supplied goes up.
3. A good that consumers demand more of Normal good
when their income increases.
4. The amount of a good or service that a Quantity demanded
consumer is willing and able to purchase at a
given price
5. A graph of the relationship between the price of a good Demand
curve
and the quantity demanded
6. · Substitution effect: when things become What is the reason
cheaper, people tend to buy more of that why the quantity
good. (Coffee vs. tea demanded of
example: if the price of coffee goes up, people will start a good
increase when its
buying more tea) greater
· Income effect: you want to spend $100 on than
coffee each month. If the price increases, you quantity
can't buy as much coffee / if the price demanded.
decreases you can buy more. They do not
last - sellers
7. A situation in which quantity supplied is will re- duce
1/
5
, LSUS MBA 701 EXAM 1 WITH ALL CORRECT & 100% VERIFIED
ANSWERS| LATEST UPDATE|ALREADY GRADED A+|JUST RELEASED
the price to move goods off the shelves. Price price falls?
is above equilibrium
Surplus
8. A situation in which quantity demanded is greater than Shortage
quantity supplied. They do not last - sellers will in-
2/
5
ANSWERS| LATEST UPDATE|ALREADY GRADED A+|JUST RELEASED
1. · As the price of goods or services goes up, the quantity Law of
Demand
demanded goes down & vice versa.
· Negative/inverse relationship between the price &
quantity demanded.
2. When the price of goods or services goes up, the quan- Law of
Supply
tity supplied goes up.
3. A good that consumers demand more of Normal good
when their income increases.
4. The amount of a good or service that a Quantity demanded
consumer is willing and able to purchase at a
given price
5. A graph of the relationship between the price of a good Demand
curve
and the quantity demanded
6. · Substitution effect: when things become What is the reason
cheaper, people tend to buy more of that why the quantity
good. (Coffee vs. tea demanded of
example: if the price of coffee goes up, people will start a good
increase when its
buying more tea) greater
· Income effect: you want to spend $100 on than
coffee each month. If the price increases, you quantity
can't buy as much coffee / if the price demanded.
decreases you can buy more. They do not
last - sellers
7. A situation in which quantity supplied is will re- duce
1/
5
, LSUS MBA 701 EXAM 1 WITH ALL CORRECT & 100% VERIFIED
ANSWERS| LATEST UPDATE|ALREADY GRADED A+|JUST RELEASED
the price to move goods off the shelves. Price price falls?
is above equilibrium
Surplus
8. A situation in which quantity demanded is greater than Shortage
quantity supplied. They do not last - sellers will in-
2/
5
