Checkpoint Qts.
(week 3
(n.3)
3-1-1
The variables are the price of a good $ the quantity
demanded
3-1-2
The nature of the relationship between the price of a good
& the quantity demanded may go in the same direction, or
in opposite directions
3-1-3
The law of demand states that if the price of a good
goes down then the quantity demanded will go up or the
other way around, this law of demand is stating that this
relationship is in a certain way an inverse relationship
between the 2 variables
3-2-1
According to professor park, an inferior good is a good
that you demand less as your income rises
3-2-2
If the price of a substitute (Good B) of a good (Good A),
rises, the demand curve of the good, Good A may rise
3-2-3
If the price of a complement Good C. of a good, ex.
Good Airises, the demand curve of the good, Good
The nature of the relationship between the price of a good
A may fall
3-3-1
its quantity supply is that it the price moves in one
direction, the supply is going to follow the same direction
3-3-2
If the price of an input used to produce Good A falls,
the supply curve of Good A will shift to the right
3-3-3
Producer expectation shifts around the supply curve dep-
ending on the expectation
3-4-1
The condition that should be met by a market equilibrium is that
quantity demand = quantity supply
3-4-2
what creates a downward pressure is surplus
3-4-3
what creates an upward pressure is shortage(other name: excess
demand)
3-5-1
If the price of a substitute say Good B, of a good, say Good A, rises the
equillbrium price & quantity of Good A will rise
3-5-2
If the price of an input used to produce Good A falls, the equilibrium
Price will decrease & the quantity will increase
IRAT range
WHILL ull passenger
