123 SMARTBOOK Ace Your Exams: Proven Strategies and Practice Questions
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Course
SMARTBOOK
Institution
SMARTBOOK
The ___ is consistent with common sense because people ordinarily do buy more of product at a lower price. - ️️Law of demand
The ____ of a good or service by a producer essentially reflects the marginal cost of producing the good or service. - ️️Supply
The ____ output is the quantity at w...
123 SMARTBOOK Ace Your Exams:
Proven Strategies and Practice
Questions
The ___ is consistent with common sense because people ordinarily do buy more of product at a lower
price. - ✔ ✔ Law of demand
The ____ of a good or service by a producer essentially reflects the marginal cost of producing the good
or service. - ✔ ✔ Supply
The ____ output is the quantity at which quantity demanded equals quantity supplied in a competitive
market. - ✔ ✔ Equilibrium
The _____ incurred by firms when producing a good or service arise from the prices of the inputs that
are used to produce said good or service. - ✔ ✔ Costs of production
The _____ suggests that at lower prices, buyers have an incentive to substitute less expensive products
for similar products that are now relatively more expensive. - ✔ ✔ Substitution effect
The "other-things-equal" assumption is important in the law of demand because _____. - ✔ ✔
Factors in addition to price affect the amount of a product purchased
The concept of demand can be summarized by a schedule or curve showing the quantity of a product
that would be _____. - ✔ ✔ Consumed at various possible prices
The demand by a consumer for a good or service essentially reflects the ___ of the good or service,
based on the utility received. - ✔ ✔ Marginal benefit
A change in ____, rather than a change in the quantity supplied, means a change in the schedule or a
shift of the supply curve. - ✔ ✔ Supply
A change in ___, rather than a change in quantity supplied, means a change in the schedule or a shift of
the supply curve. - ✔ ✔ Supply
A change in the number of buyers is a determinant of market ____. - ✔ ✔ Demand
A decrease in demand while holding supply constant results in ____. - ✔ ✔ A decrease in both
equilibrium price and quantity
___ resource prices raise production costs and, assuming a fixed product price, _____ profits. - ✔ ✔
Higher; reduce
, ____ benefit is the additional utility gained from consuming one more unit of a good or service. - ✔ ✔
Marginal
____, while holding demand constant, results in an increase in the equilibrium price of the good, but a
decrease in the equilibrium quantity of the good. - ✔ ✔ A decrease in the supply of a good
A ___ the demand curve represents a change in demand while a ____ the demand curve represents a
change in the quantity demanded. - ✔ ✔ Shift of; movement along
A _____ the supply curve represents a change in supply while a ___ the supply curve represents a
change in the quantity supplied. - ✔ ✔ Shift of; movement along
A buyer's intentions or plans in regard to the purchase of a product is known as _____. - ✔ ✔
Demand
A change in ____ causes a movement along the supply curve. - ✔ ✔ Product price
A change in ____ causes the supply curve of a product to shift leftward or rightward. - ✔ ✔ Resource
prices
A decrease in supply while holding demand constant results in a(n) ___ in equilibrium price, and a(n) ___
in equilibrium quantity. - ✔ ✔ Increase; decrease
A demand curve shows the _____. - ✔ ✔ Inverse relationship between price and quantity demanded
for a product
A favorable change in consumer tastes and preferences for a product will ____ demand, shifting the
demand curve to the _____. - ✔ ✔ Increase; right
A government-set minimum price, such as for agricultural products, is called a price ____. - ✔ ✔
Floor
An increase in business taxes causes a(n) ____ in supply and will ____ production costs. - ✔ ✔
Decrease; increase
An increase in supply while holding demand constant results in a(n) ____ in equilibrium price, but a(n)
____ in equilibrium quantity. - ✔ ✔ Decrease; increase
An increase in the equilibrium price of a good and an indeterminate change in the equilibrium quantity
is the result of ___. - ✔ ✔ An increase in demand and decrease in supply
An unfavorable change in consumer tastes and preferences for a product will ____ demand, which is
illustrated as a shift of the demand curve to the ____. - ✔ ✔ Decrease; left
As firms leave an industry, supply decreases. This is illustrated as a shift of the supply curve to the ____.
- ✔ ✔ Left
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