Mcconnell, Brue, Flynn Economics , Chapter 3 33 Correctly Answered Questions Latest Update

change in demand {Ans: a shift of the demand curve to the right or to the left}income effect {Ans: indicates that a lower price increases the purchasing power of a buyer's money income, enabling the buyer to purchase more of the product than before}what is the word associated in change in quantity demanded? {Ans: Sale.}shortage {Ans: excess demand}normal goods (superior goods) {Ans: products whose demand varies directly with money income}allocative efficiency {Ans: give consumers what they want}Law of Supply {Ans: as price rises, the quantity supplied rises; as price falls, the quantity supplied falls}supply {Ans: a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specific period}demand and supply : as price falls {Ans: people already buying buy more. new buyers enter the market}equilibrium price {Ans: the price where the intentions of buyers and sellers match}diminishing marginal utility {Ans: the principle that our additional satisfaction, or our marginal utility, tends to go down as more and more units are consumed}Change in Suppy {Ans: means a change