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Ch. 4, 5, 6 Review
1. Desire, ability and willingness to buy a product
2. Listing that shows quantities demanded of a product at all prices
3. Products used in place of other products
4. Decline in extra satisfaction from using additional quantities of a product
5. Products where the use of one product increases the use of another
6. Study of the economic behavior of individuals and firms
7. Graph showing the quantity demanded
8. Quantity demanded of a product varies inversely with price
9. Describes a given change in price that causes a relatively smaller change in quantity demanded
10. When a customer’s need for a product is not urgent, demand tends to be elastic or inelastic? ______________________.
11. A change in the number of consumers can cause ________________________.
12. Total expenditures are determined by _____________________________.
13. The relationship between the change in price and total expenditures for an elastic demand curve is _______________________.
14. The demand curve is always sloping _________________________.
15. Movement along the demand curve is the _________________________.
16. Illustrates the demand of everyone interested in purchasing a product
17. Change in quantity demanded because a price change altered consumers’ real income
1. Cost a business incurs even if nothing is produced
2. Government payment to encourage or protect an economic activity
3. Profits will be maximized when marginal revenue ___________________.
4. Graph showing the various quantities supplied at each and every price
5. Number of units sold multiplied by the average price per unit
6. Sum of fixed and variable costs
7. Total fixed costs
8. Extra cost incurred when a business produces one additional unit of a product
9. Principle that suppliers will normally offer more for sale at high prices and less at lower prices
10. Cost that changes when the rate of operation or output changes
11. Total product a firm must sell to cover its total costs
12. If producers expect lower prices in the future, they will try to _______________ supply now.
13. The four important measures of cost are: ______, ______, ______ and _______.
14. The theory of production deals with the relationship between the factors of production and the __________________________________.
15. An increase in the cost of inputs can cause the supply curve to shift to the ____________.
16. Principle that states that in the short run, output will change if only one input is varied
17. When more suppliers enter the market, the market supply will typically ____________.
18. The introduction of technology usually increases ___________.
19. Period of production that is too short for any adjustments in production except changes in the labor
1. Quantity demanded is greater than quantity supplied
2. Ticket that entitles the holder to a certain amount of a product
3. Maximum legal price that can be charged for a product
4. A socially desirable price determined by factors other than the market
5. Monetary value of a product
6. Deficiency payments are part of a federal program to assist ___________.
7. In a market economy, a high price is a signal for producers to supply ______ and consumers to buy ______.
8. Price that produces neither a surplus or a shortage
9. Quantity supplied is greater than quantity demanded at a given price
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Chapter 4 Answers
2. demand schedule
4. diminishing marginal utility
7. demand curve
8. law of demand
11. the market demand curve to shift
12. multiplying the price of a product by the product
15. change in the quantity demanded
16. market demand curve
17. income effect
Chapter 5 Answers
1. fixed cost
3. equals marginal cost
4. supply curve
5. total revenue
6. total costs
8. marginal cost
9. law of supply
10. variable cost
11. break-even point
13. total cost, fixed cost, variable cost, and marginal cost
14. output of goods and services
16. law of variable proportions
19. short run
Chapter 6 Answers
2. ration coupon
3. price ceiling
4. target price
7. more, less
8. equilibrium price
How to calculate marginal revenue? How to calculate marginal revenue Calculate the total revenue. In order to determine the marginal revenue for a business, the first step is to find the total revenue. Perform a market analysis. The next step in calculating marginal revenue is to perform a market analysis that will provide insights into a lower alternate price, as well as ... Calculate the alt revenue. ... More items...