Supply and Demand

Question 1

Other things equal, as the price of a good rises its quantity supplied will rise, and vversa..

Accepted Answer

The Law of Supply

Question 2

Production costs that change as the level of output changes. Example: raw materials

Accepted Answer

variable cost

Question 3

When quantity demanded exceeds quantity supplied...implies that the market price is too low.

Accepted Answer

shortage

Question 4

The sum of the fixed and variable production costs.

Accepted Answer

total costs

Question 5

Production costs that do not change with the level of output...example - worker's wages.

Accepted Answer

fixed costs

Question 6

A legal miminum that can be charged for a good or service.

Accepted Answer

price floor

Question 7

The acronym STONER informs us about shifts in which curve?

Accepted Answer

supply

Question 8

The acronym BITER informs us about shifts in which curve?

Accepted Answer

demand

Question 9

A legal maximum that can be charged for a good. Results in a shortage.

Accepted Answer

price ceiling

Question 10

A change in any variable other than price that influences quantity demanded.

Accepted Answer

a shift in the demand curve

Question 11

The amount of satisfaction a consumer receives from consuming a product.

Accepted Answer

utility

Question 12

Other things equal, as the price of a good/service rises, it's quantity demanded falls...

Accepted Answer

Law of Demand

Question 13

The amount of income consumers have available to spend on goods and services.

Accepted Answer

purchasing power

Question 14

A change in any variable other than price that influences quantity supplied.

Accepted Answer

A shift in the supply curve

Question 15

The additional cost of producing one more unit of output.

Accepted Answer

marginal cost

Question 16

Quantity demanded equals quantity supplied, and the market just clears.

Accepted Answer

equilibrium

Question 17

This principle says that our additional satisfaction tends to go down as we consume more...

Accepted Answer

principle of diminishing marginal utility

Question 18

Occurs when quantity supplied exceeds quantity demanded. Implies the market price is too high.

Accepted Answer

surplus

Question 19

When factors cause an increase in the demand for a product, the demand curve shifts...

Accepted Answer

to the right

Question 20

Means that people will respond to an increase/decrease in price in normal ways.

Accepted Answer

elastic

Question 21

Those goods or services people will buy when the price of one increases.

Accepted Answer

substitute

Question 22

Means that people will not dramatically change their buying habits.

Accepted Answer

inelastic

Questions 22