The demand schedule for a good indicates the _________ that will be purchased at alternative market prices
quantities
According to the law of _______ , there is a direct relationship between the price and quantity _______.
Supply; supplied
Higher wage rates for the workers that assemble computers will reduce the _______ of microcomputers.
supply
Supply is said to be _______ when the quantity supplied is very responsive to changes in price.
elastic
The elasticity of supply is defined as the ___________ change in quantity supplied divided by the ________ change in price.
percentage; percentage
Taxes on goods with ______ demand curves will tend to raise more tax revenues for the government than taxes on goods with _____ demand curves.
inelastic; elastic
If the supply curve for aspirin is perfectly elastic, then a reduction in demand will cause the equilibrium price to _________ and the equilibrium quantity to _________.
stay the same; decrease
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to _______ and the equilibrium quantity to ___________.
increase; stay the same
A change in price of a good or service typically causes a ________ for that specific good or service.
change in demand or supply*
The _________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.
Equilibrium quantity
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ______ demand.
excess
The term "ceteris paribus" means that all variables except those specified are _____
constant
The price elasticity of demand measures the responsiveness of ______ to a change in ______.
quantity demanded; price
Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the price elasticity of Bobo's demand curve?
4.25
A 10 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of soda demanded. It appears that _________ for soda is _______.
cross price elasticity of demand; -3
The price elasticity of demand for tickets to local baseball games is estimated to be equal to 0.89. In order to boost ticket revenues, an economist would advise ________ the price of game tickets because demand is ________.
increasing; inelastic
A 25 percent decrease in the price of breakfast cereal leads to a 20 percent increase in the quantity of cereal demanded. As a result, Total Revenue will __________.
decrease
A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the price of macaroni and cheese. From this information, we can assume macaroni is an ________ good.
Inferior
When demand is inelastic, consumers are ________ responsive to changes in _______.
not very; price
If cola and iced tea are good substitutes for consumers, then it is likely that their cross price elasticities are ________ than zero.
greater