Economics Flashcard

Front

Because of diminishing marginal utility, you would be willing to pay less for the fourth slice of pizza than for the first.

Back

True

Front

In equilibrium, market forces exert upward pressure to change price or quantity.

Back

False

Front

If the price elasticity of demand, or supply, is greater than one, then it is considered unit inelastic.

Back

False

Front

To eliminate a surplus of a product, producers must lower the price. Thus, a surplus puts downward pressure on the price.

Back

True

Front

A shortage occurs when the quantity supplied fails to meet the quantity demanded.

Back

True

Front

If a product's demand curve shifts to the left…

Back

its supply curve will remain unchanged, and the price will fall.

Front

A market demand curve reflects the demand of…

Back

all the consumers in a market.

Front

When the price for a product increases there will be…

Back

movement along the supply curve and an increase in the quantity supplied.

Front

If a product's supply curve shifts to the left…

Back

its demand curve will remain unchanged, and the price will increase.

Front

Which of the following products is most likely to have inelastic demand? A particular model of automobile, A particular medicine that cures arthritis, A particular brand of aspirin, A particular type of hand lotion

Back

A particular medicine that cures arthritis