GAARC ME1 CH3
ME in E
ME in E
Set of flashcards Details
| Flashcards | 27 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 30.11.2016 / 21.12.2016 |
| Weblink |
https://card2brain.ch/box/gaarc_me1_ch3
|
| Embed |
<iframe src="https://card2brain.ch/box/gaarc_me1_ch3/embed" width="780" height="150" scrolling="no" frameborder="0"></iframe>
|
Create or copy sets of flashcards
With an upgrade you can create or copy an unlimited number of sets and use many more additional features.
Log in to see all the cards.
One explanation for increase in labor supply.
Immigration
A factor other than that changes supply.
Technology
A factor other than that changes demand.
Consumer income
One reason why we have an upward-sloping supply curve.
The laws of diminishing returns
The quantities of a good demanded per unit of time at alternative prices, all else being fixed.
Effective demand
An increase in this factor will shift demand to the right.
Prices of substitutes
The price and quantity at which there is no surplus or shotage.
Equilibrium level
Occurs when the price of a product falls.
Decrease in quantity supplied
Occurs when the quantity supplied is greater than the quantity demanded.
Surplus
The recent explosion of computer technology has caused this.
Increase in supply
A demand curve for widgets shows:
the quantity of widgets that would be purchased per unit of time at each alternative price, holding other factors influencing demand fixed.
As the price of airline tickets increases, the:
quantity of tickets demanded decreases.
The law of downward-sloping demand holds that:
the quantity of a good that consumers willingly purchase increases as the price of the good falls.
If IBM and Compac computers are substitutes, a decrease in the price of IBM PCs will cause:
a decrease in the demand for Compaq computers.
The demand curve for a normal good will shift to the right if:
income increases.
The supply curve describes:
a direct relationship between price and quantity supplied.
An increase in the cost of material needed to produce snow skis causes
the supply curve shifts to the left.
Consider the producer who makes leather shoes and leather purses. An increase in the price of leather shoes would cause:
a decrease in the supply of leather purses.
The demand for snowboards has increased recently as more people have taken up the sport. This will cause the supply curve for snowboards to:
remain the same.
Supply curves are typically "positively sloped." The meaning conveyed by any such curve is that:
the higher the price, the larger the quantity suppliers will wish to sell.
An increase in the supply of commodity X for any given price of X could be caused by:
a decrease in the prices of factors of production important to this commodity.
In prosperous times, both the equilibrium price and the quantity of some commodity X may go up simultaneously. Such a situation:
is caused by a rightward-shifting demand curve and a stable supply curve.
Beef supplies are sharply reduced because of drought in the beef-raising states, and consumers turn to pork as a substitute for beef because they believe there are health benefits. In the beef market, these two phenomena would be described in terms of supply and demand as:
both the supply curve and the demand curve will shift to the left.
Let the inital price of a good be $5. If buyers wish to purchase 4000 units per week at that price while sellers wish to sell 5000 units per week then:
price will tend to decrease in the future.
At the old equilibrium price, there now exists a
shortage
"Doc Martens" shoes and boots are rather popular among young adults. This fad has had a big impact on the market for Reebok sneakers, a substitute for Doe Martens. We would expect the equilibrium:
price and quantity of Reeboks exchanged to decrease.
If consumer income increases for a normal good, the equilibrium price of that commodity will:
increase
-
- 1 / 27
-
