The opportunity cost of good A in terms of good B is equalto the

ratioof the price of good A to the price of good B

Theopportunity cost of a hot dog in terms of hamburgers is

theratio of the price of a hot dog tothe priceof a hamburger

If the price of a hot dog is $2 and the priceof a hamburger is $4

therelative price of a hot dog is 1/2 of a hamburger

theratio of one price to another

Wants, as opposed to demands,

arethe unlimited desires of the consumer

As the opportunity cost of a good decreases,people buy

moreof that good and also more of its complements.

The quantity demanded is

theamount of good people plan topurchase at particular price

A complement is agood

usedin conjunction with another good

The market demand curve shows

quantityof good peoplewould liketopurchase atdifferentprice

Ifthe price of a candy bar is $1 and the price of a fast food meal is $5,

the money price of a fast food meal is 1/5 ofa candy bar

otherthings remaining the same, the higher the price of a good, the

smalleris the quantity of the good demanded

studbud

Demand and Supply

20 termsStudBud Administration20 plays

Imported from external platform

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Whichinfluences people buying plans and varies moving along a demand curve
income
the prices of related goods
theprice of the good
Preferences
2
Scarcityguarantees that
demandswill be equal to wants
most demands will be satisfied.
wantswill exceed demands.
demandswill exceed wants
3
The opportunity cost of good A in terms of good B is equalto the
priceof good B minus the price of good A
priceof good A minus the price of good B
ratioof the price of good A to the price of good B
ratio of the price of good B to the price of good A.
4
Theopportunity cost of a hot dog in terms of hamburgers is
none of the above
the ratio of the slope of the demand curve for hot dogs toth
theratio of the price of a hot dog tothe priceof a hamburger
theprice of a hot dog minus the price of a hamburger
5
Thelaw of demand implies that demand curves
shiftleftward whenever the price rises.
slope up
shift rightward whenever the price rises.
slope down
6
The law of demand states that the quantity ofa good demanded varies
directly with population.
directlywith income.
inversely with its price.
inversely with the price of substitute goods
7
If the price of a hot dog is $2 and the priceof a hamburger is $4
the relative price of a hamburger is 1/2 of ahot dog
themoney price of a hot dog is 2 hamburgers
therelative price of a hot dog is 1/2 of a hamburger
the money price of a hamburger is 2 hot dogs
8
Arelative price is
)the slope of the supply curve.
theratio of one price to another
)the difference between one price and another
theslope of the demand curve
9
Wants, as opposed to demands,
arethe goods the consumer plans to acquire
arethe unlimited desires of the consumer
arethe goods the consumer has acquired.
)depend on the price.
10
Which of thefollowing is NOT held constant while moving along a supply curve?
expectedfuture prices
thenumber of sellers
prices of resources used in production
the price of the gooditself
11
As the opportunity cost of a good decreases,people buy
moreof that good and also more of its complements.
moreof that good but less of its complements
less of that good and also less of itscomplements.
lessof that good but more of its complements
12
The quantity demanded is
independentof consumers' buying plans
alwaysequal to the equilibrium quantity
theamount of good people plan topurchase at particular price
independentof the price of the good
13
An increase in demandcombined with no change in supply causes
theequilibrium price to rise.
a decrease in demand because the supply curvedoes not shift
a movement rightward along the demand curve.
theequilibrium price to fall
14
A complement is agood
ofhigher quality than another good
usedin conjunction with another good
usedinstead of another good
oflower quality than another good.
15
Peoplebuy more of good 1 when the price of good 2 rises. These goods are
complements.
inferiorgoods.
substitutes.
normalgoods
16
The market demand curve shows
themarginal cost of producing and selling different quantit
theeffect of advertising expenditures on the market price of
quantityof good peoplewould liketopurchase atdifferentprice
effecton market supply of changein demand forgood or service
17
Which of the following pairs of goods are most likelysubstitutes?
colaand lemon lime soda
peanut butter and gasoline
compactdiscs and compact disc players
lettuce and salad dressing
18
Ifthe price of a candy bar is $1 and the price of a fast food meal is $5,
themoney price of a candy bar is 1/5 of a fast food meal
the money price of a fast food meal is 1/5 ofa candy bar
therelative price of a fast food meal is 5 candy bars
therelative price of a candy bar is 5 fast food meals
19
otherthings remaining the same, the higher the price of a good, the
smalleris the demand for the good
smalleris the quantity of the good demanded
larger is the demand for the good.
largeris the quantity of the good demanded
20
Qd = 20 - 2P and Qs = 5 + 3P,then the equilibrium price is
$4
$2
$5
$3

Demand and Supply Flashcards | StudBud