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Eco 102 H Review (chapter 4: The Market Forces Of Supply And Demand)

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ECO 102 H REVIEW (Chapter 4: The Market Forces of Supply and Demand)
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1.  Prices and Inputs are the forces that make market economies work. 
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2.  The term supply and demand refer to the behavior of people as they interact with one another in a monopolistic market. 
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3.  A market is a group of households and firms of a particular good or service. 
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4.  A less organized market has buyers and sellers who meet at a specific time and place, where an auctioneer helps set price and arrange sales.
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5.  Price and quantity are determined by all buyers and sellers as they interact in the marketplace.
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6.  Economists use the term competitive market to describe the a market in which there are so many buyers and so many sellers that each has a negligible impact on the market. 
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7.  What are the two characteristics of the highest form of competition in the market? 
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8.  Because buyers and sellers in perfectly competitive market mus accept the price the market determines, they are said to be price takers. 
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9.  Perfecetly competitive markets are the easiest to analyze because everyone participating in the market takes the price as given by market conditions. 
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10.  The quantity demanded of any good is the amount of the good that sellers are willing to sell to the market. 
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11.  The demand schedule is a table that shows the relationship between the supply of the good and the quantity demanded, holding constant everything else. 
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12.  The downward-sloping line relating price and quantity demanded is called the demand curve. 
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13.  To analyze how market works, we need to determine the market demand.
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14.  Because the market demand curve holds other things constant, it need not be stable over time. 
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15.  An increase in demand shifts the curve to the right, and a decrease shifts the curve to the left. 
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16.  What are the 5 most important variables that can shift the demand curve?
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17.  A curve shifts when there is a change in a relevant variable on either axis. 
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18.  Tobacco and marijuana appears to be complements rather than substitutes. 
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19.  Quantity supplied has a positive correlation with price. 
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20.  Market demand and supply is the average demand and supply of all buyers and sellers respectively.
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21.  What are the 4 most important factors that influence the quantity supplied. 
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22.  At the equilibrium price, the quantity of the good that buyers are willing and able to buy exactly balances the quantity of that sellers are willing and able to sell. 
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23.  The equilibrium price is sometimes called the market-balancing price, because at this price, everyone in the market has been satisfied. 
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24.  The action of buyers and sellers naturally move markets toward the equilibrium of supply and demand. 
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25.  A surplus is sometimes called a situation of excess demand. 
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26.  The law of supply and demand says that: the price of any good adjusts to bring quantity supplied and quantity demanded for that good into balance. 
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27.  What are the three steps in analyzing how some events affect the equilibrium in a market:
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28.  A shift in supply curve is called a "change in supply," and a shift in the demand curve is called a "change in demand."
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29.  A movement along a fixed supply curve is called a "change in supply," and a movement along a fixed demand curve is called a "change in demand."
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30.  Buyers and sellers together determine the prices of the economy's many different goods and services. 
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31.  Change in supply and demand are the signals that guide the allocation of resoures. 
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