ECN 441 Test Questions and Correct Solutions Rated A+

market - is a group of buyers and sellers of a particular good o r service competitive market - is a market in which there are many sellers andbuyers so that each has a negligible impact on the market price: sellersand buyers are price takers. Monopoly - is a market in which there is only one seller and the sellercontrols the price Oligopoly - is a market in which there are just few sellers and thesellers not always compete aggressively. monopolistic competitive - market in which there aremany sellers, the products are slightly differentiated, and each sellermay set the price of its own product. Quantity demanded - is the amount of a good that buyers are willingand able to purchase at one specific price. demand schedule - a table that shows the relationship betweenthe price of the good and the quantity demanded. demand curve - is a graph of the relationship between the price ofa good and the quantity demanded. Law of Demand - Other things equal, the quantity demanded of agood falls when the price of the good rises. Market demand - refers to the sum of all individual demands for aparticular good or service. change in quantity demanded - is a movement along the demand curve caused by a change in the price of the good change in demand - is a shift of the demand curve (to the left or right) caused by a change in one or more of the determinants ofdemand. Determinants of demand - Consumer income (normal and inferior goods)I Prices of related goods and services (substitutes and complements)I Tastes or preferencesI ExpectationsI Number of buyers Quantity supplied - is the amount of a good that sellers are willingand able to sell at one specific price supply schedule - is a table that shows the relationship betweenthe price of the good and the quantity supplied supply curve - is a graph of the relationship between the price of agood and the quantity supplied Law of Supply - Other things equal, the quantity supplied of a goodrises when the price of the good rises. Market supply - refers to the sum of all individual supplies for aparticular good or service.