Microeconomics UNIT 2

If two goods are substitutes for each other, an increase in the price of one will necessarily

Quantity of a product that consumers are willing and able to buy at a certain price is called:

If the quantity supplied of a product is greater than the quantity demanded for that product, then

The point in which the producers are able to sell the entire supply, and the consumers can buy exact want they want

If the government subsidizes the production of halogen headlights

Law which states that quantity demanded of a good or service varies inversely with its price

The law of supply states, other things being constant, as price increases,

When the price of pears increases, we expect the following:

If a 2% fall in the price of a product causes the quantity demanded of the product to increase by 2%, demand is

Income elasticity of demand for is negative. This information indicates a/an

An effective price ceiling is characterized by:

Which is a characteristic of a product whose demand is elastic?

The law of supply says that:

Which of the following would cause the price of a good to increase above the equilibrium price and stay there permanent

If average households income rises and observe that the demand for pork chops increases, pork chops must be:

A study shows the coefficient of the cross elasticity of Coke and Sprite is negative. Coke and Sprite are

When college students start their careers, consume less Ramen noodles and boxed macaroni and cheese. This suggests

Which sentence describe market conditions at the equilibrium, or market clearing, price?

The income of a consumer decreases, and the consumer’s demand for a particular good increases. It can be conclude

The minimum wage is an example of: