Managerial Economics Chapter 8: Understanding markets and industry changes.

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jobrous
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143066
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Managerial Economics Chapter 8: Understanding markets and industry changes.
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2012-03-22 10:54:34
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economics MBA
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Chapter 8 exam 2
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  1. The amount of a product that cosumers want to purchase at a particular price is called the __________, and an inverse relationship between the product price and the quantity demanded of the product is called _________.
    Quantity demanded; demand.
  2. A leftward shift in the demand curve of x implies that consumers purchase ____ of x at each and every price.
    Less
  3. Demand curve (image)
  4. Supply curve (image)
  5. A rightward shift in the demand curve of x implies that the demand for x _______.
    Increases.
  6. The market demand curve ______ shift when there is a change in the price of the good.
    Does not.
  7. Some factors that may cause a shift in the demand curve for an item are:
    • Level of consumer income.
    • The prices of goods related in consumption.
    • The tastes of consumers.
  8. Other things being equal, if consumers' income increases, the market demand for a normal good _________ and its demand curve shifts to the __________.
    Increases; right.
  9. Other things being equal, if consumers' preference change, and they find product x less valuable, the demand for x _________ and its demand curve shifts to the ______.
    Decreases; left.
  10. X and Y are complementary for consumption. If the price of Y rises, the demand for X _____ and its demand curve shifts to the ________.
    Decreases; left.
  11. X and Y are substitutes for consumption. If the price of T rises, the demand for x _________ and its demand curve shifts to the _________.
    Increases; right.
  12. Other things being equal, if consumers expect future prices of X to be lower, current demand for X ______ and its demand curve shifts to the _________.
    Decreases; left.
  13. All other things being equal, if the price of a product alone rises, there will be a movement ________ its supply curve.
    Up.

    (Producers will supply more because it sells for more.)
  14. A leftward shift in the supply curve of
    Y implies that the supply of Y _______.
    Decreases.
  15. A rightward shift in the supply curve of Y implies that sellers (producers) supply ________ of Y at each and every price.
    More.
  16. Other things being equal, if the price of key inputs in the production of x increases, the supply of x _______ ans its supply curve shifts to the ________.
    Decreases; left.
  17. Other things being equal, if sellers expect future price of X to be lower, the current supply of X ______ and its supply curve shifts to the _____.
    Increases; right.
  18. Consider the market for x. If the demand alone increases (demand curve shifts rightward), the market equilibrium price will __________ and the market equilibrium quantity will _________.
    Rise; increase.
  19. Consider the market for X. IF the supply alone decreases (supply curve shifts leftward), the market equilibrium price will _________ and the market equilibrium quantity will ________.
    Rise; decrease.
  20. If the market for Y experiences an increase in demand, equilibrium price will _____ and equilibrium quantity will ________.
    Rise; increase.
  21. Other things being equal, if the market for x experiences a decrease in supply, equilibrium price would _____ and equilibrium quantity would ______.
    Rise; decrease.
  22. Consider the market for X. If both supply and demand increase (both supply and demand curves shift rightward), the market equilibrium price _________, and the market equilibrium quantity _________.
    May increase, decrease, or remain the same; increases.
  23. Consider the market for X. If both supply and demand decrease (both supply and demand curvs shift leftward), the market equilibrium price _________, and the market equilibrium quantity ________.
    May increase, decrease, or remain the same; decreases.
  24. Consider the market for X. If the supply increases while the demand decreases (supply curve shifts rightward, demand curve shifts leftward), the market equilibrium price _______ and the market equilibrium quantity _________.
    Decreases; may increase, decrease, or remain the same.

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