microeconomics exam 1

Discipline: Economics

Type of Paper: Question-Answer

Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 1 Words: 275

Question

Economics/Microeconomic Theory
goods, services, or resources that are consumed together are called
complements

diminishing marginal utility describes the
negative relationship between the quantity of a good, service or resource and the marginal utility obtained from each additional unit consumed in a given period of time

the income effect
the effect that a change in price of a good, service or resource has on the purchasing power of income

when we say in economics that there is an increase in supply, we mean that
the supply curve shifts to the right

taxes and subsidies
alter the costs or benefits of producing goods and services

a movement along the supply curve is the result of a change in
price

a shift in the supply curve is the result of a change in
non-price determinants

when producers expect higher future prices, current supply shifts to the
left
when the number of sellers in a market changes
the supply curve shifts

a decrease in the price of good A will cause an increase in the demand for good B when the two are
complements

individual supply curves added together reflect the
market supply curve

the demand curve for a good displays
all of the information found in the demand schedule for a good

when drawing a supply curve, we always place price on the _ axis and demand on the _ axis
y
x

when less output is being produced at every price, we say there’s a decrease in
quantity supply

an increase in the quantity of a good, service or resource supplied at every price is
an increase in supply

the law of supply
states that a change in price of a good, service or resource changes the quantity supplied of the good, service or resource. everything else remaining constant

the supply curves will shift to the right in the current period if
producers expect lower future prices and the number of sellers increases