Supply and Demand

Front

As prices rise, sellers will offer more goods and services for sale. What is this concept called?

Back

Law of Supply

Front

The change in consumption resulting from a change in income

Back

Income effect

Front

The Supply Curve is upward-sloping because

Back

As price increases, suppliers can earn higher profits or justify higher marginal costs to produce more.

Front

A shortage of a good is often a signal for a producer to

Back

raise the prices of that good

Front

When a price ceiling is imposed above the equilibrium price

Back

the equilibrium outcome prevails

Front

Which of the following will not cause the demand for product K to change?
A change in the price of close-substitute product J
,
An increase in consumer incomes
,
A change in the price of K
, A change in consumer tastes

Back

A change in the price of K

Front

If the demand curve shifts to the right, then the supply curve move up and to the right.

Back

true

Front

An increase in price of jelly causes a decrease in demand of peanut butter. The products are

Back

complements

Front

An effective ceiling price will: result in a product shortage, induce new firms to enter the industry, clear the market, result in a product surplus.

Back

clear the market.

Front

An increase in the price of a product will reduce the amount of it purchased because:

Back

consumers will substitute other products for the one whose price has risen.