Supply and Demand Flashcard Review

Front

When producers offer more of a good as its price increases and less as its price falls, this defines the

Back

law of supply

Front

Which of the following supply curves demonstrates a decrease in the quantity supplied?

Back

Front

A decrease in supply is demonstrated by which of the following?

Back

Front

A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in: tastes and preferences

Back

tastes and preferences

Front

The diagram represents a

Back

increase in demand

Front

The law of demand refers to how demand changes when people's incomes change, demand changes when the prices of substitutes and complements change, the quantity demanded changes when the price of the good changes, the price of the good changes when people's demand for the good changes.

Back

the quantity demanded changes when the price of the good changes

Front

Iceberg & romaine are two different types of lettuce. For most consumers, iceberg and romaine are

Back

substitutes

Front

If Mary used to buy 10 units at $4 each and now buys 15 units when the price is $4, her

Back

demand has increased

Front

Finish the sentence: When a person consumes more and more of any good.....

Back

the additional satisfaction he/she receives decreases with each unit.

Front

Which of the following would lead to an INCREASE in the demand for golf balls? A decrease in the price of golf balls. An increase in the price of golf clubs. A decrease in the cost of producing golf balls. An increase in the average household income when golf balls are a normal good.

Back

An increase in the average household income when golf balls are a normal good.