Econ 1000 Chapters 4-5 Study Guide

Which occurs when Ford Motor Company engineers achieve a revolutionary technological advance in producing automobiles?

What happens in equilibrium?

Consider the market described by the S&D curves in the figure. Which is true if the current market price is $40/unit?

If a decrease in the product X demand causes product Y's demand curve to shift to the right, then X & Y are to be what?

Given that beef is a normal good and pork is a substitute for beef, which explains change in demand btwn 2013-2015?

Consider a market in which eff. level of trade is 7,500 units. There's a positive DWL if how many units were traded?

If an increase in the price of good X causes the demand for good Y to decrease, what can be concluded?

A freeze in Peru causes the price of coffee to skyrocket. Which of the following will happen?

Which of the following could NOT result in a “Change in Supply” for “iPads ”?

Which markets are represented in the simple “Circular Flow Diagram”?

In a free market, the equilibrium quantity of trade and equilibrium price of a good are determined by whom?

If 3,635 units were traded, Deadweight-Loss would be what?

Define supply.

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If 10,280 units were traded, DWL would be what?

In equilibrium, Total Consumer Surplus would be what?

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What does Brenda's money serve as when she spent the $1500 she won at a casino last weekend on a TV from Walmart?

Which of the following demonstrates the “Law of Demand”?

Which does Deadweight Loss refer to?

If 1,670 units were traded, Deadweight-Loss would be what?

A decrease in the price of chicken, all other things unchanged, will result in a(n) what?

If PB&Js are complementary goods, then increase in the price of peanut butter, other things being equal will result in:

In most markets, Total Social Surplus is equal to which of the following?

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Consider an outcome for which Patricia loses $12, Rachel gains $6 & Charlotte gains $3.It appears as if this is a what?

A decrease in BOTH price and quantity traded in the market for oranges from July 2014 - July 2016 results in a what?

An increase in BOTH price and quantity traded of corn between Aug 2013-Aug 2016 would result in a what?

Define “seller’s reservation price”.

A boycott of lettuce would, if effective, cause what?

An increase in income will result in a decrease in demand for what?

What does the Law of Demand imply?

If coffee and tea are substitute goods, which happened to tea demand when the price of coffee INCREASED sharply?

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Select the BEST inference when one purpose of money is to serve as a unit of account:

A increase in supply, with NO change in demand, will lead to what in equilibrium quantity and what in equilibrium price?

Beginning with equilibrium in the table above, an increase in price of $1 would cause a what?

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Consider the market for oranges. If there's “excess demand” at a price of $2.35, then equilibrium price must be what?

If 2,245 (at the efficient level) units were traded, Deadweight-Loss would be what?

Consider this outcome: Al loses $4, Beth gains $3, and Charles gains $2. It appears as if this is a what?

Privately owned enterprises in a free market economy have a primary goal of which of the following?

Which of the following statements is/are correct?

A decrease in BOTH price and quantity traded in the market for apples from Apr 2014-Apr 2016 results in a what?

In equilibrium, how many hats will be traded, each at a price of how much?

An increase in both price and qty traded in the market for flour between Jun 2013 & Jun 2015 results in which?

What does a Circular Flow Diagram do?

Select the BEST inference when Jamal buying 20 non-fiction books from Chad gave Jamal a CS of $20 and Chad a PS of $28:

A decrease in supply, with NO change in demand, will lead to what in equilibrium quantity and what in equilibrium price?

A situation in which the sum of gains AND losses over all people is positive in value is defined as a what?

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After getting a $3k raise last year, Zenoba increased the avg # of times that she eats out from once to 3 times a week.

In a “free market economy”, which describes profits?

Scott values an item as a buyer at $15 and Brad values as a seller at $10. Which is true about the trade?