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EPF Final Exam / 100% CORRECT ANSWERS

Scarcity - ANS -Condition that exists when there are not enough resources to satisfy all of the competing uses. Economics - ANS -The study of how individuals and societies make choices under the co... ndition of scarcity. Substitute goods - ANS -Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises. Complementary goods - ANS -Goods that are commonly used with other goods Complementary goods - ANS -Products and services that are used together. When the price of one falls, the demand for the other increases (and conversely). Inferior good - ANS -a good that consumers demand less of when their incomes increase Supply - ANS -the varying amounts of a good or service that producers are willing and able to release on the market at different prices in a particular time period. Economic profit - ANS -total revenue minus total cost, including both explicit and implicit costs Quantity supplied - ANS -the amount of a product or service released on the market at a given price when all other variables remain the same. Supply curve - ANS -A curve that shows the relationship between the price of a product and the quantity of the product supplied. Change in supply - ANS -a shift of the supply curve, which changes the quantity supplied at any given price 5 determinants of supply - ANS -1. Technology 2. Number of producers 3. Price of inputs 4. Expectations 5. Price of related goods Equilibrium quantity - ANS -the quantity supplied and the quantity demanded at the equilibrium price Equilibrium price - ANS -the price that balances quantity supplied and quantity demanded [Show More]

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