Econ Chapter 3 Vocabulary Part 1

A market in which there are many buyers and sellers of the same goods and services is called a:

• Duopoly market
• Oligopolistic market
• Monopolistic market
• Competitive market

An economic model that shows how a competitive market behaves is called a:

• supply and demand model
• consumer surplus model
• price elasticity model
• market equilibrium model

What does market equilibrium mean?

• Market equilibrium occurs when prices are set by government regulations.
• Market equilibrium is when demand exceeds supply.
• Market equilibrium is the point where production costs are minimized.
• Market equilibrium is the point where supply equals demand.

What is a demand schedule?

• A demand schedule is a table of consumer income levels.

• A demand schedule is a table showing the quantity of a good that consumers will buy at different prices.
• A demand schedule is a comprehensive and complete list of all available goods in a market.

• A demand schedule is a graph showing consumer preferences over time.

The actual amount of a good or a service consumers are willing to buy at some specific price is called:

• Demand curve
• Market price
• Quantity demanded
• Consumer surplus

A graphical representation of the demand schedule that shows the relationship between the quantity demanded and price is called:

• Demand curve
• Market equilibrium line
• Price elasticity graph
• Supply curve

This states that a higher price for a good or service, other things being equal, leads people to demand a smaller quantity of that good or service.

• Law of Supply
• Market Equilibrium
• Price Elasticity
• Law of Demand

What is a shift of the demand curve?

• A shift of the demand curve is a change in the quantity demanded at any given price.

• A shift of the demand curve means that the quantity supplied has increased.
• A shift of the demand curve is caused solely by changes in consumer income.
• A shift of the demand curve indicates a decrease in the price of the good.

A change in the quantity demanded of a good arising from a change in the good's price is represented as:

• Increase in demand
• Movement along the demand curve.

• Change in demand
• Shift in demand curve

If a rise in the price of one good leads to an increase of demand for the another good, then we know that these two goods are:

• complements
• luxury goods
• inferior goods
• substitutes