Economics Flashcard

Front

When the price of a product increases, there is

Back

movement along the demand curve.

Front

On the demand curve, price and quantity demanded are

Back

inversely related.

Front

During the Dust Bowl of the 1930’s, many farmers’ agricultural goods were destroyed. What happened to the market for agricultural goods?

Back

Decrease in demand

Front

What is the Law of Supply?

Back

When price increases, quantity supplied increases.

Front

Which of the following explains the Law of Demand? When the price of a good increases, people tend to buy substitutes instead.

Back

When the price of a good increases, people tend to buy substitutes instead.

Front

Which of the following pairs of goods are substitutes? Jelly & Jam, Eggs & Bacon, Apples & Broccoli, Mugs & Candles

Back

Jelly & Jam

Front

Which of the following pairs of goods are complements? Jelly & Jam, Eggs & Bacon, Apples & Broccoli, Mugs & Candles

Back

Eggs & Bacon

Front

When consumer income decreases,

Back

demand for inferior goods increases.

Front

Assume peanut butter and jelly are complementary goods. When the price of jelly increases, what will happen to the demand for peanut butter?

Back

It will decrease.

Front

The cost of wood increases sharply. What happens to the supply for pencils?

Back

It will decrease due to cost of inputs.