If a seller in a competitive market chooses to charge more than the market price, then
buyers will tend to make purchases from other sellers.
the sellers' profits definitely would increase.
other sellers would also raise their prices.
the owners of the ra
buyers will tend to make purchases from other sellers.
Each of the following is a determinant of demand except
the prices of related goods.
expectations.
tastes.
technology
technology
If a good is normal, then an increase in income will result in
a movement down and to the right along the demand curve for the good.
a movement up and to the left along the demand curve for the good.
an increase in the demand for the good.
a decrease in t
an increase in the demand for the good.
Currently you purchase 6 packages of hot dogs a month. You will graduate from college in December and you will start a new job in January. You have no plans to purchase hot dogs in January. For you, hot dogs are
a normal good.
a law-of-demand good.
an inf
an inferior good.
A downward-sloping demand curve reflects
the idea that there are fewer suppliers of the good as time goes by.
the idea that the demand for the good in question is decreasing as time goes by.
the idea that there exists a substitute for the good in question
the law of demand
The line that relates the price of a good to the quantity demanded of that good is called the
demand schedule, and it slopes upward only if the demand for the good in question, relative to the demand for other goods, is increasing over time.
demand curve,
demand curve, and it slopes downward as long as the good in question conforms to the law of demand.
Other things equal, when the price of a good rises, the
quantity supplied of the good increases.
demand curve shifts to the left.
supply increases.
quantity demanded of the good increases.
quantity supplied of the good increases.
If the price of a good is low,
firms can and should raise the price of the product.
the quantity supplied of the good could be zero.
firms would increase profit by increasing output.
the supply curve for the good will shift to the left
the quantity supplied of the good could be zero.
A decrease in the number of sellers in the market causes
the supply curve to shift to the right.
a movement up and to the right along a stationary supply curve.
a movement downward and to the left along a stationary supply curve.
the supply curve to shift
the supply curve to shift to the left.
A movement along the supply curve might be caused by a change in
input prices.
the price of the good or service that is being supplied.
technology.
expectations about future prices.
the price of the good or service that is being supplied.
An advance in production technology will
shift the supply curve to the right and shift the demand curve to the right.
shift the supply curve to the right, but the demand curve will be unaffected.
increase a firm's costs.
allow firms to raise the price of
shift the supply curve to the right, but the demand curve will be unaffected.
An increase in the price of a good would
increase the supply of the good.
give producers an incentive to produce more.
decrease both the quantity demanded of the good and the quantity supplied of the good.
increase the amount purchased by buyers.
give producers an incentive to produce more.
When the price of a good is higher than the equilibrium price,
quantity demanded exceeds quantity supplied.
sellers desire to produce and sell more than buyers wish to purchase.
buyers desire to purchase more than is produced.
a shortage will exist
sellers desire to produce and sell more than buyers wish to purchase.
If goods A and B are complements, then an increase in the price of good A will result in
more of good A being sold.
no difference in the quantity sold of either good.
more of good B being sold
less of good B being sold
less of good B being sold
Suppose that a decrease in the price of good X results in fewer units of good Y being sold. This implies that X and Y are
inferior goods.
complementary goods.
substitute goods.
normal goods.
substitute goods.