ENGLISH GLOSSARY SUPPLY AND DEMAN

1. 4 factors leading to a change of demand(non-price): income, consumer expectations, population,

advertising

2. Allocative efficiency: results in producing the combination and quantity of goods/services most
preferred by consumers
no one can become better off in terms of increasing their benefit from consumption without someone
else becoming worse off
P=MC (price = marginal cost)

3. An example from a product market: strawberries become more popular due to health benefits
(changes in taste) = increase in demand
higher price = signal of shortage in strawberry market
increase in price = incentive to increase quantity supplied
higher price = signal + incentive for consumers = buy less
∴ reallocation of resources

4. An example from a resource market: supply of labour increases (new immigration law)
old wage = surplus of labour = fall in wage until no more surplus
falling wage = signal for firms: surplus in labour market + incentive for firms: hire more labour
lower wage = signal + less incentive to work
∴ reallocation of labour resources

5. Ceteris paribus: is a latin phrase meaning ‘all other things being equal’

6. Change in demand: an increase or decrease in demand (the quantity of a good service that consumers
are willing and able to buy) as a result of a change in factors other than price, a shift of the demand
curve to the left or right.

7. Change in demand-price: cause a movement along the demand curve, ceteris paribus

8. Change in quantity demanded: an increase or decrease in quantity demanded (the amount of a good
or service that consumers are willing and able to buy at specific price) as a result of a change in price.

9. Change in quantity supplied: an increase or decrease in quantity supplied (the amount of a good or
service that producers are willing and able to offer for sale at specific price) as a result of a change in
price.

10. Change in supply – price: cause a movement along the supply curve ceteris paribus

11. Change in supply: an increase or decrease in supply (the quantity of a good or service that producers
are willing and able to offer for sale) as a result of a change in factors other than price, a shift of the
supply curve to the left or right.

12. Choices that arise from scarcity: what to produce opportunity cost = the value of the next best
alternative

13. Competitive market equilibrium: production of good occurs where MB = MC

social surplus (=consumer + producer surplus) is maximum
 allocative (+productive) efficiency achieved production of quantity of goods mostly wanted by society
at lowest possible cost
best use of scarce resources maximum social welfare

14. Competitive market: many buyers and sellers acting independently, none of whom can influence the
price of the product.

15. Complementary good: a product that is used or consumed jointly with another product, (tennis rackets
and tennis balls).

16. Consumer surplus: highest price consumers are willing to pay for a good/service minus the price they
actually pay

17. Consumer: The one who buys the goods & services (you & me)

18. costs of factors of production (factor or resource prices): firm buys factors of production (=land,
labour, capital, entrepreneurship) to produce product
rise in factor price = rise in production costs = production less profitable = firm produces less =
leftward shift of supply curve + vice versa

19. Demand curve: a graph of the relationship between the price of a good or service and the quantity
buyers are willing and able to buy.

20. Demand curve: a graph showing the quantity demanded at each possible price.

21. Demand curve: a graph that shows demand based on price

22. Demand schedule: a chart showing the quantity demanded at various prices.

23. Demand schedule: a list of the quantities of a good that one person will buy at various prices.

24. Demand shifters: a factor other than price that can cause a change in demand for a good or service,
examples include changes in consumer incomes or tastes.

25. Demand: establish how much is the quantity of goods consumers want to buy at each price ceteris
paribus

26. Demand: The amount of a good or service consumers are willing to buy at various prices during a
specified time

27. Demand: the desire to own something and the ability to pay for it

28. Demand: the quantity of a good or service that consumers are both willing and able to buy at various
prices.

29. Demand: the various quantities of a good/service the consumer is willing and able to buy at different
possible prices during a particular time, ceteris paribus

30. Demographic (population) changes, i.e. changes in the number of buyers: increased population =
increased buyers = increased demand = rightward shift
decreased population = decreased buyers = decreased demand = leftward shift
31. Difference between movements along a demand curve and shifts of the demand curve: change in
price = change in quantity demanded = movement along the demand curve
change in non-price determinant of demand = change in demand = shift of demand curve

32. Difference between movements along a supply curve and shifts of the supply curve: movement
along supply curve = change in quantity supplied
shift of the supply curve = change in supply

33. Diminishing Marginal Utility: with each unit purchased, satisfaction decrease (the expensive soda at
the ball game)

34. Elastic demand: demand is very sensitive to a change in price

35. Elastic demand: when a rise or fall in price greatly effects how much we buy

36. Elastic: responsive to a change in price, applied to either supply or demand of a good or service is said
to be elastic when the quantity supplied or demanded changes significantly with a change in price.

37. Elasticity of demand: how consumers react to a change in price

38. Elasticity of supply: a measure of the sensitive of producers to a change in price.

39. Elasticity: a measure of the degree to wich the quantity demanded or supplied of a good or service
changes in response to a change in price.

40. Elasticy of demand: a measure of the sensitive of consumers to a change in price.

41. Equilibrium point: is the price where the quantity demanded and the quantity supplied coincide

42. Equilibrium Price: The point where supply and demand achieve balance.

43. Equilibrium price: the point where the supply and demand curve meet

44. Excise tax: a tax on the manufacture or sale of a good.

45. Explanation for the shape of the demand curve: principle of decreasing marginal utility: marginal
utility falls as the quantity consumed increases, consumer induced to buy each extra unit only if its price
falls ∴ demand curve can also be called marginal benefit (MB) curve: D=MB

46. Factors of productions: Resources necessary to produce godos and services.

47. Fixed cost: cost that doesn’t change no matter how much is produced

48. Goods: Tangible product that we use to satisfy our wants and needs.

49. Income in the case of inferior goods: inferior good = good whose demand falls as income rises, has
negative income elasticity ∴ increase in income = leftward shift of demand curve, decrease in income =
rightward shift of demand curve
50. Income in the case of normal goods: normal good = good whose demand rises as income rises, has
positive income elasticity ∴ increase in income = rightward shift of demand curve, decree in income =
leftward shift of demand curve

51. Inelastic demand: demand not very sensitive to a change in price

52. Inelastic demand: when a rise or fall does not affect how much we buy

53. Inelastic: not responsive, or only slightly responsive, to a change in price, applied to either supply or
demand, the supply or demand of a good or services is said to be inelastic when the quantity supplied or
demanded does not change significantly with a change in price.

54. Law of demand: an economic law stating that as the price of a good or service increases, and viceversa

55. Law of demand: as price fall the more consumers are willing to buy

56. Law of demand: establish an inverse relationship between the price and the quantity demanded ceteris
paribus

57. Law of demand: negative causal relationship between price of a good and its quantity demanded over a
particular time period, ceteris paribus i.e. as price increases, quantity demanded falls / as price falls,
quantity demanded increases

58. Law of demand: The principle that quantity demanded varies according to Price.

59. Law of demand: when price is lower, consumers will buy more

60. Law of supply: an economic law stating that as the price of a good or service increases, the quantity
supplied increases, and viceversa.

61. Law of supply: As prices rise for a good or service so will the
amount supplied.

62. Law of supply: establish, ceteris paribus, that as the price of a good or service increases, the quantity of
goods or services that supplier offer will increase and vice versa

63. Law of supply: positive causal relationship between the quantity of a good supplied over a particular
time period and its price, ceteris paribus i.e. as the price of a good increases, the quantity of the good
supplied increases / as the price falls, quantity suppled falls, ceteris paribus

64. Law of supply: Principle that suppliers will normally offer more for sale at higher prices and less at
lower prices.

65. Law of supply: the higher the price, the more that is produced

66. Law of supply: The principle taht suppliers will normally offer more for sale at higher prices and less
at lower prices.

67. Marginal (private) cost: extra (private) cost to the producer of producing an additional unit of output.

68. Marginal utility: the extra benefit or utility to the consumer of consuming an additional unit of output
69. Market demand: sum all individual consumer demands for a good service

70. Market demand: the sum of all the individual quantities demanded in a market.

71. Market demand: Total demand of all consumers to buy a product or service.

72. Market disequilibrium: there is shortage or surplus

price changes until quantity demanded = quantity supplied: market equilibrium

73. Market equilibrium: point where the quantity demanded = quantity supplied
creates market clearing price + quantity where there is no excess demand / excess supply no tendency
for price to change

74. Market Place: Anywhere buyers and sellers come together

75. Market supply: Combined supply schedules of all business that provide the same good or service.

76. Market supply: sum of all individual firm’s supplies for a good

77. Market supply: the sum of all the individual quantities supplied in a market.

78. Market supply: The total of the supplies schedules of all the business that provide the same good or
service.

79. Market: an arrangement where buyers and sellers of goods, services, resources carry out an exchange

80. Market: Free and willing Exchange of godos and services between buyers and sellers.

81. Market: is medium that allows buyers and sellers of a specific good or service to interact in other to
facilitate an exchange for a given price

82. Non price determinant of supply: factor other than price than influences supply

83. Non price determinants of demand: income in the case of normal goods income in the case of inferior
goods preferences and tastes price of complementary goods demographic (population) changes, i.e.
changes in the number of buyers.

84. Non price determinants of supply: costs of factors of production (factor or resource prices)
technology prices of related goods: competitive supply prices of related goods: joint supply producer
(firm) expectations taxes (indirect taxes or taxes on profits) subsides the number of firms ‘shocks’, or
sudden unpredictable events.

85. Non-price determinant of demand: variables other than price that influence demand cause shifts in
the demand curve

86. Preferences and tastes: product become more popular= increase in demand= rightward shift of
demand curve product becomes less popular= decrease in demand = leftward shifts of demand curve.

87. Price alterations due to surplus or shortage: change in price until quantity demanded = quantity
supplied
 shortage = rise in prise
surplus = fall in prise

88. Price ceiling: a government set ‘maximum’ price limit

89. Price floor: a government set ‘lower limit’ for prices

90. Price: is the number of monetary units needed to get one unit of a good or service.

91. Price: The most significant influence on the quantity supplied of any product

92. Prices of complementary goods: complementary goods = goods used in combination with each other,
negative cross-price elasticity of demand
rise in price of good x = fall in demand for good y = leftward shift of demand curve
fall in price of good x = rise in demand for good y = rightward shift of demand curve

93. Prices of related goods: competitive supply: competitive supply = two/more goods in competition for
the same resources
producing more of good x = producing less of good y (e.g. wheat or corn)
∴ increase in price of good x = producer producing more of good x and less of good y = decrease in
supply of good y = leftward shift of supply curve + vice versa

94. Prices of related goods: joint supply production of two/more goods derived from a single product i.e.
producing more of good x = producing more of good y
increase in price of good x = increase in quantity supplied of good x = increase in quantity supplied of
good y = rightward shift of supply curve
e.g. butter + skimmed milk produced from whole milk

95. Prices of substitute goods: substitute goods = goods which can be used in place of each other, positive
cross-price elasticity of demand
fall in price of good x = fall in demand of good y = leftward shift of demand curve
rise in prise of good x = rise in demand of good y = rightward shift of demand curve

96. Producer surplus: price received by firms for selling their good/service minus the lowest price they
are willing to accept to produce the good

97. Producer(firm) expectations: firm expect future increase in price = withhold some current supply =
decrease in supply at present = leftwards shift of supply curve firm expect future decrease i price =
increase supply at present = rightward shift of supply curve
98. Productive efficiency: firms produce at the lowest possible cost essential for allocative efficiency

99. Productivity: The degree to wich resources are being used efficently to produce godos and services.

100. Profit: The money a business receives for its producto r services over and above its costs.

101. Quantity demanded: the amount of a good or service that consumers are willing and able to buy
at specific price.

102. Quantity supplied: the amount of a good or service that producers are willing and able to offer
for sale at specific price.
103. Real income effect: When prices rise and income doesn't, people will not be able to consume at
the same rate.

104. Reason for upward slope of the supply curve: higher prices = increase in the firm's profit =
more incentive to produce more output
lower prices = decrease in the firm's profit = less incentive to produce more output
∴ positive relationship: higher price = greater quantity supplied

105. Reasons for government intervention: competitive market equilibrium is unrealistic

doesn't answer to for whom to produce question

106. Revenue table: a table that lists the various prices for a given product along with the quantity
expected to sell and the revenue that would be earned by the producer at each price.

107. Revenue: the amount of money a firm receives in the course of doing business.

108. Services: Work performed by a person for someone else.

109. Shift in quantity demanded to the left: income and preferences are down, substitutive goods
are down and complementary goods are up

110. Shift in quantity demanded to the right: income and preferences are up, substitutive goods are
up and complementary goods are down

111. Shift in quantity supplied to the left: at any given price when: costs are up, taxes are up and
technology is down.

112. Shift in quantity supplied to the right: at any given price when: costs are down, taxes are down
and technology is up.

113. Shifts of the demand curve: rightward shift of demand curve= more is demanded for a given
price= increase in demand leftward shift of demand curve = less is demanded for a given price=
decrease in demand.
114. Shifts of the supply curve: rightward shift of supply curve = more supplied for a given price =
increase in supply leftward shift of supply curve = less supplied for a given price = decrease in supply

115. 'shocks', or sudden unpredictable events: e.g. weather (agricultural products), war,
natural/man-made catastrophes

116. Shortage: is when for a certain price is more the quantity demanded than the quantity supplied.

117. Shortage: quantity demanded is greater than quantity supplied

118. Shortage: the gap when quantity demanded > quantity supplied
excess demand

119. Social surplus: sum of consumer and producer surplus

maximum at market equilibrium
120. Subsides: subsidy = payment made to firm by government per unit output
∴ increase in subsidy = fall in production costs = increase in supply = rightward shift of supply curve+
vice versa

121. Subsidy: a goverment payment to a supplier of goods or services, designed to help that supplier
continue to operate.

122. Substitute goods: a product that satisfies the same basic want as another product.

123. Substitution effect: as price rises, alternatives are found

124. Supply chain: the network of people, organizations, and activities involved in supplying goods
and services to consumers.

125. Supply curve: a graph showing the amount that would be supplied at each possible price

126. Supply curve: a graph that shows supply based on price

127. Supply curve: a graph that shows the relationship between price and the quantity that producers
are willing and able to supply.

128. Supply elasticity: Measure of how the quantity supplied of good or service changes in response
to change Price.

129. Supply schedule: a chart showing the amount of good or service supplied at various prices

130. Supply schedule: a table that shows the quantities supplied at different prices in a market.

131. Supply shifter: a factor other than price that can cause a change in the supply of a good or
service, axamples include changes in technologies and goverment policy.
132. Supply: establish the quantity of goods a manufacturer want to supply at each price ceteris
paribus

133. Supply: The amount of good or services producers are willing to sell at various prices during a
specified time

134. Supply: the amount of goods available

135. Supply: the quantity of a good or service that producers are willing and able to offer for sale at
various prices.

136. Supply: The various quantities of a good or service that producers are willing to sell at all
posible market Price.

137. Supply: the various quantities of a good/service a firm is willing and able to produce and supply
to the market for sale at different possible prices, during a particular time period, ceteris paribus

138. Surplus: is when for a certain price is more the quantity supplied than the quantity demanded

139. Surplus: quantity supplied is greater than quantity demanded

140. Surplus: The amount by wich the quantity supplied is higher tan the quantity demanded.
141. Surplus: the gap when quantity demanded < quantity supplied
excess supply

142. Taxes (indirect taxes or taxes on profits): firms treat taxes as costs of production
∴ increase in tax = increase in production costs = decrease in supply = leftward shift of supply curve +
vice versa

143. Technology: new, improved technology = lowered cost of production = production more
profitable = increase in supply = rightward shift of supply curve
+ vice versa (unlikely)

144. The number of firms: market supply = sum of individual supplies

∴ increase in number of firms = increase in supply = rightward shift of supply curve + vice versa

145. Total revenue test: a tool used by producers to gauge the impact of a change in price on
revenues earned, it is also used by economists to determine the elasticity of demand for a good or
service.

146. Total revenue: the total amount received by a business for selling a good or service, it is
calculated by multiplying the quantity of a good or service sold by its Price.

147. Unitary elastic demanded: a condition that exists when the percentage change in the quantity
demanded of a good service equals the percentage change in price, a demand elasticity equal to exactly.
148. Unitary elastic supply: a condition that exists when the percentage change in the quantity
supplied of a good or service equals the percentage change in price, a supply elasticity equal exactly to.

149. Utility: the usefulness of an item

150. Vertical supply curve: quantity supplied is independent of price:

fixed quantity supplied because no time to produce more (e.g. theatre tickets = fixed quantity supplied)
fixed quantity supplied because no possibility of producing more of it (e.g. original antiques and
paintings)

151. Willing and able: willing = consumer wants to buy the good
able = consumer can afford the good

Questions

What single factor controls quantity supplied or demanded? Price

What is one thing that can cause a change in demand (shifting the whole curve)? Population
What other things would shift the demand curve to the right (create more demand)? Income, population,
taste y preferences, substitutes, y complementary good (thing the are used with other goods like
electronics and batteries).
What is a substitute? An item that is purchased that can replace the use of an item
What is a complementary good? An item that is used along with another item
When the cost of an item is a small part of our monthly budget, it is more likely to be an example of
what? Inelastic demand
When our behavior in buying an item is greatly affected by its price this is an example of what? Elastic
demand
When the cost of an item goes up and consumers buy less of the item that is an example of what law?
The law of demand
When the cost of an item goes up and supplier produce more of the item that is an example of which of
the following? The law of supply
What would be a factor of something that would affect the cost of producing an item? The cost of
inputs and taxes
When does a producer see profit? When the factors of production are paid for
What does a supply schedule show? The number supplied at various prices
What would shift the supply curve to the right (increase supply?) An improvement in technology
Which of the following best describes the term "inputs?" The factors of production (land, labor, capital)
This is a TRUE of the law of supply? It is a "direct relationship" that is price moves with quantity
supplied
What would cause a change in supply other than price? The cost of inputs
How can technology affect supply?
Better technology can produce better quality goods & services, technology can change the speed with
which goods and services are produced, and technology can make for cheaper goods and services
What is true of both regulations and taxes?
They cause the supplier to pass the extra expense on to the consumer
How does competition affect supply?
Better quality items, lower prices, and a more efficient use of resources usually results.
What is the correct definition of the law of diminishing returns?
As additional inputs (factors of production) are added, there is less profit and efficiency
From a supplier's point of view, what signals do falling prices send?
To produce less
What might be responses to a shortage?
Rationing and black markets
A minimum price per gallon for milk is set by the government. This is an example of what?
A price floor
A maximum limit is set on credit card interest rates by the government. This is an example of what?
A price ceiling
Raising the minimum wage might have what NEGATIVE effects?
Could cause prices to rise (inflation) or an increase in unemployment
What does the equilibrium point represent on a graph of supply and demand?
Where supply and demand curves meet for a certain item and the price that will be charged for an item
Why are the laws of supply and demand important to the understanding of U.S. government?
72 % of our economy is determined by market forces, politicians and individuals are influenced by
business,
and running an effective government that is fair to both suppliers and consumers is important

Question text

1. Read the definition and write the correct concept

(a) The price that balances quantity supplied and quantity demanded
Equilibrium price
(b) Upward-sloping line that graphically shows the quantities supplied at each possible price.
Supply curve
(c) The amount of money left over after expenses are taken out
Profit
 (d) The principle that suppliers will normally offer more for sale at higher prices and less at
lower prices
Law of supply
(e) The amount of a product consumers are willing and able to buy at different prices
Demand
(f) A government payment that supports a business or market
Subsidy
(g) The concept that people are normally willing to buy less of a product if the price is high and
more of a product if the price is low
Law of demand
(h) Responsiveness of quantity supplied to a change in price
Supply elasticity
(i) The degree to which resources are being used efficiently to produce goods and services
Productivity
(j) A situation in which quantity demanded is greater that quantity supplied
Shortage

2.
A demand schedule: table showing quantities demanded at different possible price
F supply curve: Upward-sloping line that graphically shows the quantities supplied at which possible price
J diminishing marginal utility: decreasing satisfaction or usefulness as additional units of a product are acquired
G law of supply: the principle that suppliers will normally offer more for sale at higher
B market supply: the total of the supply schedules of businesses that provide the same good or service
H demand curve: the downward sloping line that graphically shows the quantities demanded at each possible
price
C surplus: A situation in which quantity supplied is greater than quantity demanded
E utility: the amount of satisfaction one gets from a good or service
D supply schedule: table showing quantities supplied to a change in price
I profit: the amount of money left over after expenses are take out

3. Choose the correct option

1) Table showing quantities supplied to a change in price
a) Supply
b) Demand schedule
c) Supply curve
d) Supply schedule
2) Responsiveness of quantity supplied to a change in price
a) Demand elasticity
b) Supply elasticity
c) Supply schedule
d) Supply curve
3) The amount of a product that producers are willing and able to offer at different prices
a) Subsidy
b) Supply
c) Surplus
d) Utility
4) The price that balances quantity supplied and quantity demanded
a) Supply curve
b) Surplus
 c) Equilibrium price
d) Subsidy
5) The amount of money left over after expenses are take out
a) Profit
b) Utility
c) Supply
d) Demand
6) A government payment that supports a business or market
a) Utility
b) Substitute
c) Subsidy
d) Supply
7) In the law of supply an increase in price results in:
a) Decrease of quantity supplied
b) Equilibrium in the quantity supplied
c) Increase of quantity supplied

8) The desire to own a product and the ability / willingness to pay for it. This is the definition for:
a) Supply
b) Elasticity
c) Demand
d) Market
9) What occurs when quantity supplied is greater than quantity demand price?
a) Excess demand
b) Equilibrium price
c) Comparative analysis
d) Surplus
10) What’s supply?
a) Refers to how many goods you have to sell
b) Refers to how many goods you have to buy
c) Refers to hoe much something costs
d) Refers to how much someone spends

4. True / False: Read the definition and circle True or False

1) The law of demand states that as price decreases, quantity demanded decreases
a) True b) False
2) A demand schedule shows people´s willingness to buy specific quantities of a good at different
a) True b) False
3) The market demand for a good is the sum of individual demands for the good
a) True b) False
4) In the time period known as the market day, producers can sell more goods as their price rise
a) True b) False
5) An increase in the number of suppliers in a market will cause the supply curve to shift to the left
a) True b) False
6) If two goods are complements, when one can replace the other in consumption
a) True b) False
7) If income increases and the demand for a good increase, then it is a normal good
a) True b) False
8) Supply goes up and curves goes  right
 a) True b) False
9) Supply curve is a table showing the quantities produced or offered at each and every possible price in the
marker
a) True b) False
10) Extra usefulness or additional satisfaction person gets from acquiring or using one more unit for a product
the satisfaction you get is called theory of diminishing marginal utility
a)True b) False

Question Quiz

1. The various quantities of a good or service that producers are willing to sell at all possible market
prices.
Demand
Surplus
Shortage
Supply
2. In our economy, the basis of the economic decisions are:
The products
The prices
Marketing
Advertisement
3. A product that can be used in the place of another
Complement
Compliment
Substitute
Different
4. The economic model that determines the price of anything in a market is known as
Law of supply
Law of demand
Supply and demand
Market demand
5. What might cause a market supply curve to shift to the right?
A increased government subsidies
B increased labour costs
C increased product advertising
D lower income tax rates
6. The balance state of the supply and the demand is the…
Economy standards
Economic equilibrium
Market share
Surplus
7. The point where they achieve balance is the…………….At this price neither a surplus nor a shortage
exists.
 Celling price
Equilibrium price
Supply curve
Demand curve
8. Factors that affect the demand are:
Buyers(#of): change in the number of consumers
Income: changes in consumer´s income
Related goods: compliments and substitutes
All of the above
9. The amount by which the quantity demanded is higher than the quantity supplied
Surplus
Shortage
Supply
Demand

10. According to the law of supply: “As the price for a good rises, the quantity supplied”
Decreases
Rises
Keep unchanged
Shift to the left
11. Which of the following will not cause the demand for product K to change?
A change in the price of a substitute product
An increase in consumer incomes
An change in the price of K
A change in consumer tastes
12. According to the law of demand, quantity demanded and price mover in
The same direction
Upward
Downward
Opposite directions
13. The graph lists quantities demanded on the
Vertical axis
Horizontal axis
Law of demand
Equilibrium point
14. The graph lists prices on the
Horizontal axis
Vertical axis
Equilibrium point
Surplus
15. An increase in the price of a product will reduce the amount of it purchase because:
Supply curves are upsloping
The higher price means that incomes have risen
Consumers will substitute other products for the one whose price has risen
Consumers substitute relatively high-priced for relatively low-priced products
16. It states that producers will normally offer more for sale at higher prices and less at lower prices
Law of demand
Law of diminishing marginal utility
Law of supply
Law of DMU
 17. Four firms supply the market. The market supply is 50 units at $20 and 100 units at $40. The table
shows the market share of each firm at the two prices.

Market share(%) Market share(%)

At 20% At 40%
A 10% 10%
B 20% 50%
C 30% 20%
D 40% 20%
Which firm does not have a normal upward-sloping supply curve?
A
B
C
D

18. This principle states that additional satisfaction tends to go down as we consume more and more units.
DMU
UMD
MUD
UUM
19. What is a market demand curve?
The demand for all of a country´s products
The total sum of individual demand curves for a product
The output of all the firms in a industry
The stocks of a particular good available for sale
20. The money a business has left over after it covers its costs is the…
Supply
Demand
Profit
Utility
21. In the diagram, D1D1 shows an individual´s initial demand curve for public transport. What could
cause the demand curve to shift to D2D1?

Cost of a
car journey
D

0 Number of car
journey
A The costs of running the individual´s car fall
B The individual is no longer able to drive
C The price of public transport falls
D The public transport services are reduced
22. The amount by which the quantity supplied is higher than the quantity demanded
Offer
Supply
Surplus
Shortage
23. How much people want to buy a product at any possible price is the definition of…
Supply
Balance
 Shortage
Demand
24. A good that goes well with another good
Complementary
Substitute
Additional
Optional

25. In 2010, poor harvests reduced fruit crops, and furniture producers gave big discounts on furniture
products. How might these change have affected the position of the supply curve for the products?
Fruit Furniture producers
A no change Shift to the left
B shift to the left No change
C shift to the left Shift to the left
D shift to the right No change
A
B
C
D
26. Which of the following would not shift the demand curve for beef?
A widely publicized study which indicates beef increases one´s cholesterol
A reduction in the price of cattle feed
An effective advertising campaign by pork producers
A change in the income of beef consumers
27. Supply curve can also shift in response to the following factors
Technology
Substitutes
Compliments
All of the above
28. What would not cause the demand curve for foreign holidays to shift to the left?
A a fall in consumer´s disposable income
B a fall in the price of domestic holidays
C a rise in advertising of domestic holidays
D a rise in the price of foreign holidays
29. If the price of K declines, the demand curve for the complementary product J will:
Shift to the left
Decrease
Shift to the right
Remain unchanged
30. In the diagram, D1 is the initial demand curve for student places at universities. What could cause the
demand curve to shift to D2?
D2
D1
Fees
D2
D1
Student places
 A a decrease in student fees for universities
B a decrease in the level
C an increase in graduate earnings compared with non-graduate earnings
D higher A level grades demanded for university entrance

31. In a market for a good both demand and supply change at the same time.
Which combination of changes would enable an economist to predict with confidence that more
resources will be needed in its production but not the direction of the associated price change?
Demand Supply
A decrease Decrease
B decrease Increase
C increase Decrease
D increase Increase

A
B
C
D
32. A table that list the various quantities of a product or service that someone is willing to buy over a range
of possible prices.
Demand schedule
Supply schedule
Law of supply
Law of demand
33. We buy products for the pleasure, usefulness, or satisfaction they give us and it´s called
Usefulnesment
Utility
Marginal
Enjoy
34. The graph shows…

Demand curve
Supply curve
Equilibrium
Surplus