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ECON 705 Module 1 Questions With Complete Solution Rated (A+)
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ECON 705 Module 1 Questions With CompleteSolution Rated (A+)
Quiz :demand - Answer :The quantity of a good or service that buyers are
willing and able to buy at all possible prices during a certain time period.
Quiz :two components of supply - Answer :a supplier's willingness to produce
and ability to produce and sell.
Quiz :Law of supply states as price of good rises - Answer :suppliers will make
more. How a change in the price of a good or service will affect the quantity
supplied of that good or service.
Quiz :Law of supply describes the behavior of - Answer :sellers
Quiz :The upward slope of a supply curve means that there is a -
Answer :direct (or positive) relationship between price and the quantity
supplied
Quiz :On a supply curve, When price increases - Answer :the quantity supplied
increases, and when price decreases, the quantity supplied decreases.
Quiz :supply - Answer :The quantity of a good or service that producers are
willing and able to offer for sale at each possible price during a given time
period.
Quiz :State the law of demand - Answer :As the price of a good or service
rises, the quantity demanded of that good or service falls. Likewise, as the
price of a good or service falls, the quantity demanded of that good or service
rises.
Quiz :Define the law of supply - Answer :As the price of a good or service
rises, the quantity supplied of that good or service rises. Likewise, as the price
of a good or service falls, the quantity supplied of that good or service falls.
Quiz :Demand curve is a downward sloping line because - Answer :of the
inverse relationship between price and quantity demanded
Quiz :With a decrease in demand due to external factors - Answer :the
demand curve shifts left. When demand is less, the demand curve shifts left.
, Quiz :With an increase in demand due to external market factors -
Answer :the demand curve shifts to the right
Quiz :What is considered a "normal" good by economists? - Answer :A good
for which demand increases as income increases and demand decreases as
income decreases.
Quiz :A decrease in incomes would cause the demand for a normal good to -
Answer :decrease, shifting the demand curve to the left.
Quiz :What is the difference between the quantity demanded and the demand
curve? - Answer :quantity demanded changes as a result from a change in
price. A change in the quantity demanded is illustrated by movement along the
demand curve from one point to another. A change in the demand for a good
or service changes not because the price of the good changes, but because
something else in the market changes. A change in demand is illustrated by
shifting the demand curve left or right.
Quiz :What is the difference between the quantity supplied and the supply
curve? - Answer :A change in the quantity supplied only occurs due to price, is
illustrated by movement along the supply curve from one point to another. A
change in supply, which is caused when something in the market for a good or
service changes, is illustrated by a shift in the supply curve to the left or right.
Quiz :A change in price results in movement along the - Answer :demand
curve from one point to another and is called a change in the quantity
demanded.
Quiz :An increase in the price of complementary good - Answer :would cause
the demand for matching good to decrease, shifting the demand curve to the
left. (cereal and milk)
Quiz :What is the reason why the quantity demanded of a good increase when
its price falls? - Answer :Consumers want to purchase more because it is
cheaper. May be used as a substitute product.
Quiz :Inferior goods are - Answer :a less expensive alternative to normal
goods. So, demand for inferior goods increases as income decreases, and
demand for inferior goods decreases as income increases.
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