Economics of Demand and Supply Flashcards

If the demand curve for product B shifts to the right as the price of product A declines then:

When the price of a product rises, consumers shift their purchases to other products whose prices are now relatively lower. This statement describes:

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:

An increase in product price will cause:

The slope of the typical production possibilities curve:

With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will:

If the supply and demand curves for a product both decrease, then equilibrium:

An increase in the price of product A will:

In the following questions you are asked to determine, other things equal, the effects of a given change in a determinate of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X (2) he equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.

An increase in the quantity demanded means that:

When an economy is operating under conditions of full employment, the production of more commodity A will mean the production of less of commodity B because:

Which of the following most closely related to the idea of opportunity costs?

If consumer incomes increase, the demand for product X:

If the supply of a product decreases and the demand for that product simultaneously increases, the equilibrium:

In terms of the circular flow diagram, households make expenditures in the ___ market and receive income through the ___ market.