Econ Chapter 4-6 Review

Price goes up, quantity demanded goes up (generally)

The demand curve illustrates

Which of the following is an example of a good with inelastic demand?

A measure of the way a quantity supplied reacts to a change in price is called

A good for which the demand falls when income rises is called

Which of the following is the best example of the law of supply?

A chart that lists how much of a good a supplier will offer at various prices is called

Price goes down, quantity demanded goes down (generally)

The law of demand says ...

A good that consumers will demand more of when their income increases is called

Which of the following is a fixed cost for a store?

A good consumed instead of one that’s price has risen is called

If you keep buying despite a price increase, your demand is

Which of the following is an example of a variable cost?

Total revenue is defined as

Demand that is very sensitive to a change in price is called

According to the law of supply.

Price goes up, quantity demanded goes down (generally)

A good that is bought and used along with another good is called

Which of the following describes the substitution effect?

If sellers expect the price of a good to rise in the future, they will

Change in output from adding one additional worker is called

A graph of the quantity supplied of a good by all suppliers at different prices is called

A graphic representation of a demand schedule is called

If the supply curve shifts to the right and the demand curve stays the same, what happens to equilibrium price?

Quantity supplied decreases as price decreases is called

Demand that is not very sensitive to a change in price is called

The minimum legal price that an employer may pay a worker for one hour of work.

Which of the following is NOT a characteristic of the price system?

Pepsi and Coke would be considered

Price goes down, quantity demanded goes up (generally)

A payment to the government on the production or sale of a good is called

Change in consumption resulting from a change of real income is called

The idea where total product increases at a smaller rate eventually is called

A market supply curve shows

When marginal revenue = marginal cost it represents

A drop in price will ...

S>D

Which of the following is an example of a good with an inelastic supply?

Price multiplied by quantity =

When quantity demanded is more than the quantity supplied what economic situation has occurred?

S<D

P x Q= ?

A way to encourage people to take a certain action is called

Substitutes are

Which of the following would lead to an increase in supply?

When quantity demanded is less than the quantity supplied what economic situation has occurred?

The cost of producing one more unit of a good.

Fixed cost plus variable cost =

An established minimum price that buyers must pay for a good or service is called

At what point does quantity demanded and quantity supplied become equal?

Government payment that supports a business or market is called

The extra income from selling one more unit of a good.

For most goods, a rise in people’s income means that there will be

The effect when consumers react to an increase in price by consuming less of that good and more of other goods is called

The price at which the quantity demanded is equal to the quantity supplied is called

Which of the following businesses has the most elastic supply?

Price goes up and quantity demanded goes down.

The "place" where goods and services are illegally bought and sold is called

Peanut Butter and Jelly would be considered