Economics TEST Ch 7

an additional amount of satisfaction

changes or events that would affect the price of apples are

the more you have of something, the less satisfaction you will get from an additional unit?

What are some changes or events that would most affect the price of TV sets?

when the government limits items that are in short supply

amount of a good or service consumers are able and willing to buy at various prices during a specific time period

equilibrium price of a good falls if more suppliers enter the market?

government-set maximum price that can be charged for particular goods or services

as more units of a factor of production are added, total output continues to increase, but at a diminishing rate

insulin for a diabatic is considered an elastic good.

According to the law of supply, higher prices prompt producers to do produce less

What do consumers look for when the price of a good is too high?

economic concept dealing with consumers’ responsiveness to an increase or decrease in the price of a product

 amount of a good or service that  producers are able and willing to sell at various prices during a specified time prd.

price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy

economic rule stating that if two items satisfy the same need and the price of one rises, people will buy the other

 situation in which quantity demanded is greater than the quantity supplied

ability of any good or service to satisfy customer wants

If the price of an item rises, what usually happens to the quantity demanded?

What is the quantity demanded of a product affected by?

process of freely exchanging goods and services between buyers and sellers

If the price of a product is above its equilibrium price, a surplus occurs

economic rule stating that the quantity demanded and price move in opposite directions

ECONOMIC RULE stating that price and quantity supplied move in the same direction

Diminishing marginal utility refers to when additional satisfaction declines as additional units of an item are consumed

economic concept dealing with consumers’ responsiveness to an increase or decrease in price

shows quantity that producers are willing to supply at each possible price

situation in which quantity supplied is greater than quantity demanded

a price change does not result in a substantial change in the quantity demanded

If the price of an item rises, what usually happens to the quantity demanded?

What does the interaction of supply and demand determine?

Which of the following is an elastic good?