What do low prices signal buyers to do?A. nothingB. buy moreC. buy lessD. substitute
B. buy more
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Equilibrium is reached when what occurs?A. quantity supplied equals quantity demandedB. there is no change in the quantity suppliedC. price increasesD. prices are inelastic
A. quantity supplied equals quantity demanded
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Which is a likely complement to a cell phone?A. a cameraB. movie ticketsC. appsD. pencils
C. apps
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According to the Law of Supply, which of these would happen to an item as its price rose?A. Producers would make less of it.B. Producers would make more of it.C. Producers would increase the price even more.D. Producers would lowe...
B. Producers would make more of it.
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consumer demand for different amounts at every price, causing the demand curve to shift to the left or the right
change in demand
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movement along the demand curve showing that a different quantity is purchased in response to a change in price
change in quantity demanded
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the extent to which a change in price causes a change in the quantity demanded
demand elasticity
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type of elasticity in which the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)
inelastic
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satisfaction or usefulness obtained from acquiring one more unit of a product
marginal utility
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rule stating that more will be demanded at lower prices and less at higher prices
Law of Demand
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graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time
demand curve
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combination of desire, ability, and willingness to buy a product
demand
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the portion of a change in quantity demanded caused by a change in price that makes other products more or less costly
substitution effect
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products related in such a way that an increase in the price of one reduces the demand for the other
complements
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What purpose does a cost-benefit analysis serve?
A cost-benefit analysis evaluates the costs and benefits of various projects to find the one that has the highest ratio of benefits to costs. Also, it...
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What three conditions are necessary for the market structure known as "pure competition" to exist?
The three conditions necessary for the market structure known as "pure competition" to exit are very large numbers, identical products, and freedom of...
