Microeconomics Q&a

In: Business and Management

Submitted By casieangela
Words 341
Pages 2
Name : Casie Angela Thanos
Subject : Microeconomics

1. Competitive market is a market in which there are many buyer and sellers so that each has a negligible impact on the market price. Perfectly competitive market: monopoly, oligopoly, monopolistic 2. Many things determine the quantity demanded at only goods but there’s one determinant plays a central role the price of the goods 3. – Substitution effect: when the price at a commodity falls, it becomes relatively cheaper than other substitute commodities. * Income effect: when the price of a commodity falls, the consumer can buy more quantity of the commodity with big given income. * Number of consumers: when price of a commodity is relatively high, only few consumers willing to buy more. 4. Yes, it does. Whether those are a change in consumers tastes or a change in price, there are many variables that can shift the demand curve 5. Spinach is an inferior good. If the demand for a good raises, when income falls, the good is called an inferior good. 6. Many things determine the quantity demanded of any good but there’s one determinant plays a central role the price of the goods. 7. Supply schedule is a table that shows the relationship between the price of a good and quantity supplied. 8. Yes, change in producer’s technology lead to a movement along the supply curve because technology reduced the firm’s cost. So the advance in technology raised the supply of ice cream. Yes, because when the price of one or more those inputs, producing goods is less profitable and firms supply less goods. 9. When the price of coffee rises, the demand of toast is decreased. The forces that can more a market toward its equilibrium, quantity supplied, quantity demand, and price 10. When the price of coffee rises * The supply of toast increases * The demand of toast…...

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