examples of inefficiency when still fully employing all resources correct answers -if firms do not use the least cost method of production
-if the marginal cost of production is not the same for every firm in an industry
-if too much of one product and too little of another product are produced
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ECON 208 Chapter 3 || WELL-ENLIGHTENED!!
quantity demanded correct answers The amount of a good or service that consumers want to
purchase during some time period.
What variables influence the total amount of some product that consumers in the relevant
market want to buy during a given time period? correct answers Product's own price
Consumers' income
Prices of other products
Tastes
Population
Significant changes in weather
What is the difference between stocks and flows? correct answers A stock variable is a
variable whose value has meaning at a point in time.
A flow variable has a time dimension - so much per unit of time.
How will the quantity demanded of a product change as its price changes? correct answers
The price of a product and the quantity demanded are related negatively.
demand schedule correct answers A table showing the relationship between quantity
demanded and the price of a commodity, other things being equal.
demand curve correct answers The graphical representation of the relationship between
quantity demanded and the price of a commodity, other things being equal.
demand correct answers The entire relationship between the quantity of a commodity that
buyers want to purchase and the price of that commodity, other things being equal.
What shifts the demand curve? correct answers A change in any of the variables (other than
the product's) that affect the quantity demanded will shift the demand curve to a new
position.
substitutes in consumption correct answers Goods that can be used in place of another good
to satisfy similar needs or desires.
complement in consumption correct answers Goods that tend to be consumed together.
change in demand correct answers A change in the quantity demanded at each possible price
of the commodity, represented by a shift in the whole demand curve.
change in quantity demanded correct answers A change in the specific quantity of the good
demanded, represented by a change from one point on a demand curve to another point,
either on the original demand curve or on a new one.
What causes a change in quantity demanded? correct answers A change quantity demanded
can result from a shift in the demand curve with the price constant, from a movement along a
given demand curve due to a change in the price, or from a combination of the two.
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