1.
Scarcity guarantees that
A
wants will exceed demands.
B
demands will be equal to wants.
C
demands will exceed wants.
D
most demands will be satisfied.
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Scarcity guarantees that
wants will exceed demands.
demands will be equal to wants.
demands will exceed wants.
most demands will be satisfied.
Demands differ from wants in that
wants require a plan to acquire a good but demands require no such plan.
demands are unlimited, whereas wants are limited by income.
wants imply a decision about which demands to satisfy, while demands involve no specific plan to acquire the good.
demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good.
A complement is a good
used in conjunction with another good.
used instead of another good.
of lower quality than another good.
of higher quality than another good.
If income decreases or the price of a complement rises
there is an upward movement along the demand curve for the good.
there is a downward movement along the demand curve for the good.
the demand curve for a normal good shifts leftward.
the demand curve for a normal good shifts rightward.
A normal good is a good for which
there are very few complements.
demand decreases when income increases.
demand increases when income increases.
there are few substitutes.
If income increases or the price of a complement falls
the supply curve of a normal good shifts leftward.
the supply curve of a normal good shifts rightward.
the demand curve for a normal good shifts rightward.
the demand curve for a normal good shifts leftward.
A relative price is
the ratio of one price to another.
the difference between one price and another.
the slope of the supply curve.
the slope of the demand curve.
A supply curve shows the relation between the quantity of a good supplied and
the price of the good. Usually a supply curve has negative slope.
income. Usually a supply curve has positive slope.
income. Usually a supply curve has negative slope.
the price of the good. Usually a supply curve has positive slope.
Normal goods are those for which demand decreases as
the price of a substitute falls.
the price of a complement falls.
the goods own price rises.
income decreases.
The opportunity cost of a hot dog in terms of hamburgers is
the price of a hot dog minus the price of a hamburger.
the ratio of the slope of the supply curve for hot dogs to the slope of the supply curve forhamburgers.
the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers.
the ratio of the price of a hot dog to the price of a hamburger.
Each point on a supply curve represents
the highest price sellers can get for each unit over time.
the lowest price buyers will accept per unit of the good.
the lowest price for which a supplier can profitably sell another unit.
the highest price buyers will pay for the good.
Each point on the demand curve reflects
the highest price consumers are willing and able to pay for that particular unit of a good.
the highest price sellers will accept for all units they are producing.
the lowest-cost technology available to produce a good.
all the wants of a given household.
If a good is an inferior good, then purchases of that good will decrease when
the demand for it increases.
population increases.
income increases.
the price of a substitute rises.
Over the past decade technological improvements that have lowered the cost of producing an automobile have increased
the demand but not the supply of automobiles.
both the supply and the demand for automobiles.
the supply but not the demand for automobiles.
neither the supply nor the demand for automobiles.
When economists speak of preferences as influencing demand, they are referring to
the availability of a good to all income classes.
directly observable changes in prices and income.
the excess of wants over the available supplies.
an individuals attitudes toward goods and services.
The quantity demanded is
the amount of a good that consumers plan to purchase at a particular price.
independent of the price of the good.
independent of consumers buying plans.
always equal to the equilibrium quantity.
Suppose people buy more of good 1 when the price of good 2 falls. These goods are
substitutes.
inferior.
normal.
complements.
If a producer can use resources to produce either good A or good B, then A and B are
substitutes in production.
substitutes in consumption.
complements in consumption.
complements in production.
The law of demand states that, other things remaining the same, the higher the price of a good, the
larger is the demand for the good.
smaller is the demand for the good.
smaller is the quantity of the good demanded.
larger is the quantity of the good demanded.
A change in the price of a good
neither shifts the goods demand curve nor causes a movement along it.
shifts the goods demand curve but does not cause a movement along it.
does not shift the goods demand curve but does cause a movement along it.
shifts the goods demand curve and also causes a movement along it.