Economic Theory Unit 2

What do consumers hope to maximize in exchanges?

What do we call a legal maximum selling price?

What do producers try to maximize in supplying goods/services?

Which of the following would be an example of the law of diminishing marginal utility?

Which theory of economics does not remove emotions from man's decision making?

Which product of those listed would most likely have inelastic demand?

What's another name for the equlibrium price?

Lower prices have the effect of raising consumers' _______________.

Necessities have less elastic demand than those goods we see as luxuries.

Which change in demand is best represented by fads or trends?

Increases in demand or supply are represented by shifting the curves to the:

Which of the following is an example of a price floor in effect?

What is marginal utility?

Quantity demanded varies inversely to the price, ceteris paribus is the_______________.

What does price elasticity measure?