Econ Quiz 6

The number of products that a firm is willing to sell is also known as the number it is willing to __________.

supply

__________ is when a good or service is actually sold.

demand

Consumer goods and services are sold in the __________.

product market

The four factors of production are sold in the __________.

factor market

If a change in price results in a smaller relative change in the quantity sold, the product involved probably has __________.

inelastic demand

If a change in price results in a larger relative change in the quantity sold, the product involved probably has __________.

elastic demand

A table that shows the number of items that could be sold at various prices is called a __________.

demand schedule

A graph that shows the number of items a firm would be willing to sell at various prices is called a __________.

supply curve

The fact that after a point the costs of production per item increase as the number produced grows shows __________.

diminishing returns

A chart that shows the flow of money, goods and services, and the four factors of production is called a __________.

circular flow model

A table that shows the number of items a firm would be willing to sell at various prices is called a __________.

supply schedule

A graph that shows the number of items that would be sold at various prices is called a __________.

demand curve

Two goods that are used together are called __________.

complements

Two goods that can be used in place of each other are __________.

substitute goods

A market price above the equilibrium price will result in a __________ of the product.

surplus

The principle that says people will buy more of a product at a lower price than they will at a higher price (if nothing else changes) is the __________.

law of demand

A market price below the equilibrium price will result in a __________ of the product.

shortage

The relationship between a change in price and a change in the quantity sold is called __________.

elasticity

A product’s supply and demand curves will intersect at a __________.

point of equilibrium

Factors that can cause a demand curve to move to the left or right are called __________.

determinants of demand

The principle of economics that states that at higher prices producers will be willing to offer more products for sale than at lower prices is called the __________.

law of supply