Chapter 2 DEMAND, SUPPLY, PRICING AND MARKET EQUILIBRIUM

DEFINITION OF DEMAND is ......

• the number of producers willing to supply a good or service at a given price
• the amount of money consumers are willing to pay for a good or service
• the quantity of a good or service that consumers are not willing to purchase at a given price
• the quantity of a good or service that consumers are willing and able to purchase at a given price

DEFINITION OF SUPPLY is ........

• the demand for a product or service
• the cost of producing a product or service
• the amount of money available for purchase
• the total amount of a product or service available for purchase

Which one is the Law of DEMAND?

• As the price of a good or service decreases, the quantity demanded for that good or service decreases
• As the price of a good or service increases, the quantity supplied for that good or service decreases
• As the price of a good or service increases, the quantity demanded for that good or service increases
• As the price of a good or service increases, the quantity demanded for that good or service decreases

Which one is the Law of SUPPLY?

• As the price of a good or service increases, the quantity supplied by producers increases.

• The Law of Supply only applies to services, not goods.
• The quantity supplied by producers remains constant regardless of the price of a good or service.
• As the price of a good or service increases, the quantity supplied by producers decreases.

DEFINITION OF PRICING is .........

• The amount of money that has to be paid to acquire

  a given product

• The process of determining the weight of a product or service
• The process of determining the color of a product or service
• The process of determining the size of a product or service

Point at which the quantity demanded equals the quantity supplied

• equilibrium
• disruption
• imbalance
• overload

What does this curve represent?

• pricing

• supply

• equilibrium

• demand

What does this curve represent?

• supply

• equilibrium

• pricing

• demand

At what point is equilibrium?

answer choices

• $1

• $2

• $3

• $4

WHAT IS

POSITIVE ECONOMICS?

• The study of what is, and how the economy works, without making judgments about whether it is good or bad.
• The study of negative economic impacts
• The evaluation of ethical economic practices
• The analysis of economic policies