Econ Balls(Complete solutions)
Supply correct answers The amount of good service that procedures are able and willing to sell at various
prices during a specified time period
Demand correct answers the amount of a good or service that consumers are able and willing to buy at
various possible prices during a specified time period
voluntary exchange correct answers a transaction in which a buyer and a seller exercise their economic
freedom by working out their own terms of exchange (Both Win)
Law of demand correct answers economic rule stating that the quantity demanded and price move in
opposite directions
Real income effect correct answers economic rule stating that individuals cannot keep buying the same
quantity of a product if its price rises while their income stays the same
Substitution effect correct answers Economic rule stating that if two items satisfy the same need and the
price of one rises, people will buy the other.
law of diminishing marginal utility correct answers rule stating that the additional satisfaction a consumer
gets from purchasing one more unit of a product will lessen with each additional unit purchased(cheese
pizza)
demand schedule correct answers Table showing quantities of goods that consumers are willing and able
to buy at a series of possible prices
Normal goods and the demand for them correct answers Goods that increases in demand when consumer
income rises
Inferior goods and the demand for them correct answers Good that increases in demand when consumer
income falls
5 determinants of demand correct answers Changes in taste and preferences- Do they want Chicken or
Beef
Supply correct answers The amount of good service that procedures are able and willing to sell at various
prices during a specified time period
Demand correct answers the amount of a good or service that consumers are able and willing to buy at
various possible prices during a specified time period
voluntary exchange correct answers a transaction in which a buyer and a seller exercise their economic
freedom by working out their own terms of exchange (Both Win)
Law of demand correct answers economic rule stating that the quantity demanded and price move in
opposite directions
Real income effect correct answers economic rule stating that individuals cannot keep buying the same
quantity of a product if its price rises while their income stays the same
Substitution effect correct answers Economic rule stating that if two items satisfy the same need and the
price of one rises, people will buy the other.
law of diminishing marginal utility correct answers rule stating that the additional satisfaction a consumer
gets from purchasing one more unit of a product will lessen with each additional unit purchased(cheese
pizza)
demand schedule correct answers Table showing quantities of goods that consumers are willing and able
to buy at a series of possible prices
Normal goods and the demand for them correct answers Goods that increases in demand when consumer
income rises
Inferior goods and the demand for them correct answers Good that increases in demand when consumer
income falls
5 determinants of demand correct answers Changes in taste and preferences- Do they want Chicken or
Beef
