Unit 2 - Microeconomics

Front

A table showing the specific quantities that would be purchased at various prices is known as....

Back

Demand Schedule

Front

If the price of XBox increases, then we would expect that the demand for Playstation would fall.

Back

False

Front

On the market demand and supply graph, the vertical axis shows __________________.

Back

prices.

Front

On the demand and supply graph, the horizontal axis shows ________________.

Back

quantity.

Front

On the market demand and supply graph, the point equilibrium always happens

Back

where the demand and supply curves intersect.

Front

A surplus happens when

Back

prices are too high relative to consumer demand.

Front

Which of the following best describes the Law of Demand?

Back

As price goes down, quantity demanded goes up (and vice versa).

Front

Movement up the Demand curve is called a(n)

Back

increase in quantity demanded

Front

As the price of a good rises in a market, it acts as a signal:

Back

to producers that they should supply a greater quantity of the good.

Front

What is the Equilibrium Price?

Back

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.