Supply and Demand

Front

As prices rise, sellers will offer more goods and services for sale.

Back

Law of Supply

Front

The change in consumption resulting from a change in income

Back

Income effect

Front

Why is the Supply Curve upward-sloping?

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

What happens 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? Options:
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

What will an effective ceiling price do?

Back

clear the market.

Front

Why does an increase in the price of a product reduce the amount purchased?

Back

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