Podcast
Questions and Answers
What is the primary motivation behind the substitution effect in the context of demand?
What is the primary motivation behind the substitution effect in the context of demand?
Which economic factor causes a shift in the demand curve rather than just a movement along it?
Which economic factor causes a shift in the demand curve rather than just a movement along it?
What economic concept explains why consumers experience less satisfaction from each additional unit of a product consumed?
What economic concept explains why consumers experience less satisfaction from each additional unit of a product consumed?
Which factor directly influences the quantity supplied at different prices, leading to a shift in supply?
Which factor directly influences the quantity supplied at different prices, leading to a shift in supply?
Signup and view all the answers
Which scenario best explains a movement along a fixed demand curve rather than a shift in demand?
Which scenario best explains a movement along a fixed demand curve rather than a shift in demand?
Signup and view all the answers
How does an increase in taxes generally affect the supply of goods?
How does an increase in taxes generally affect the supply of goods?
Signup and view all the answers
What is the term used to describe the point where demand and supply intersect in a market?
What is the term used to describe the point where demand and supply intersect in a market?
Signup and view all the answers
If a government enacts laws to set a maximum legal price for a good, what is this called?
If a government enacts laws to set a maximum legal price for a good, what is this called?
Signup and view all the answers
What concept describes abandoning an activity because of heavy prior investment, even if it is not rational?
What concept describes abandoning an activity because of heavy prior investment, even if it is not rational?
Signup and view all the answers
What happens to the slope of the demand curve when demand for a good increases?
What happens to the slope of the demand curve when demand for a good increases?
Signup and view all the answers
What does 'Ceteris Paribus' mean in economics?
What does 'Ceteris Paribus' mean in economics?
Signup and view all the answers
Which term describes the excess supply that occurs when the market price is above the equilibrium price?
Which term describes the excess supply that occurs when the market price is above the equilibrium price?
Signup and view all the answers
What does a normal good refer to?
What does a normal good refer to?
Signup and view all the answers
Which of the following is a shifter of demand?
Which of the following is a shifter of demand?
Signup and view all the answers
What is the law of demand based on?
What is the law of demand based on?
Signup and view all the answers
What is an inferior good?
What is an inferior good?
Signup and view all the answers
Which factor causes a shift in the demand curve?
Which factor causes a shift in the demand curve?
Signup and view all the answers
What does the law of demand explain about the relationship between price and quantity demanded?
What does the law of demand explain about the relationship between price and quantity demanded?
Signup and view all the answers