Macro Economics Hw.3

The downward slope of the demand curve again illustrates the pattern that as _____________ rises, _________________ decreases.

The nature of demand indicates that as the price of a good increases:

The term "ceteris paribus" means that:

Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.

_________________ refers to the total number of units that are purchased at that price.

The demand curve for a typical good has a(n):

But nearly all supply curves share a basic similarity: they slope _______________.

When quantity demanded decreases in response to a change in price:

The ___________ is the only price where quantity demanded is equal to quantity supplied.

After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef from Canada, the likely economic effect on the U.S. demand curve for beef from Canada is:

If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm's profits will increase.

When __________________, a firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

A change in price of a good or service typically causes ___________________________ for that specific good or service.

According to the law of supply:

Which of the following would reduce the supply of microcomputers?

Interpret the following statement: "An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market."

Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________

The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.