ScienceEconomicsWeek 6: Market Equilibrium and Policy
Please enter something

Week 6: Market Equilibrium and Policy

Yusif Barnes avatar Yusif Barnes
31 July 2023
4.4 (49 reviews)
18 test answers

Unlock all answers in this set

Unlock answers (14)
question
An increase in supply is shown as a:
answer
rightward shift of the supply curve
question
Non-price determinants are held ______ for any given supply curve
answer
constant
question
All other factors held constant when a non-price determinant of supply changes:
answer
1. an entire new supply relationship is created 2. the market adjusts to a new equilibrium price and quantity 3. supply curve shifts to the left or right
question
The ____ of a good or service is the primary determinant of the quantity demanded by consumers
answer
price
question
A non-price determinant of demand is:
answer
a characteristic of demand for a good, service, or resource other than its own market price
question
Other factors remaining constant, when the _______ of a good increases the quantity supplied increases
answer
price
question
The non-price determinants or other factors that affect demand are held constant for any given ________
answer
demand curve
question
Other factors remaining constant, if a non-price determinant of supply changes:
answer
1. an entirely new supply relationship is created 2. the supply curve shifts to the left or right
question
When both demand and supply change simultaneously,
answer
we can determine the effect on either price or quantity, but not both
question
When the supply curve increase,
answer
the good becomes less expensive, Ceteris Paribus
question
When there is a change in a non-price determinant of supply, the:
answer
1. supply curve shifts and there is a change in the quantity demanded 2. supply curve shifts and there's a movement along the demand curve
question
A decrease in price is ____(A)_____ to consumers. A decrease in quantity is ____(B)____ to consumers
answer
A. beneficial B. detrimental
question
When both demand and supply change, the:
answer
change in price/quantity will be indeterminate
question
Ceteris Paribus, when supply increase,
answer
1. quantity supplied increases 2. price falls
question
We can determine how price or quantity will change, but not both, when:
answer
both demand and supply curce
question
A good will become more affordable when:
answer
the supply curve shifts to the right causing the price to fall
question
If both demand and supply change simultaneously, the effect on either price or quantity will be _______
answer
indeterminant
question
The equilibrium price is indeterminate when:
answer
there is an increase or decrease in both demand and supply