Econ section 2

goods that are used in place of one another

producers offer more of a good as its price increases and less as its price falls

( T / F ) When elasticity is greater than one, the supply is inelastic.

When the price is lowered and the total revenue rises the demand for that good is said to be?

consumers will buy more of a good when its price is lower and less when its price is higher

a cost that rises and falls depending on the quantity produced

describes demand that is not very sensitive to price changes

a graph of the quantity supplied of a good at various prices

What is a market?

A supply curve rises from ___________ to _________ because higher prices lead to higher output.

The amount of goods available is?

a table that lists the quantity of a good a person will buy at various prices in a market

Why will revenue fall if a firm raises the price of a good whose demand is elastic?

describes demand that is very sensitive to a change in price

When the price is raised and the total revenue rises the good or service is said to be?

a good that consumers demand less of when their income increases

T or F In the long run, supply can become more Inelastic.

describes demand whose elasticity is exactly equal to 1

a chart that lists how much of a good a supplier will offer at various

The desire to own something and the ability to pay for it

Buyers and sellers willing decided to make a transaction

a cost that does not change, no matter how much of a good is produced

What happens to total revenue when price decreases, but demand is inelastic?

a good that consumers demand more of when their income increases

the total amount of money a company receives by selling goods or services

When the price falls and total revenue falls the good or service is said to be?

Variable

the cost of operating a facility

What are the two variables represented in a supply schedule or supply curve?

two goods that are bought and used together

T/F In the short run it is difficult for a firm to change its output so supply is inelastic