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Microeconomics Review 1

Teacher: Wendy Alexander
Across
The consumer ______ occurs where the choice of a set of goods and services maximizes the level of satisfaction for each consumer, subject to limit income.
Agricultural price supports are a type of price _____.
A representative unit by which utility is measured.
The marginal rate of substitution is _______ to the change in quantity of one good that just offsets a one unit change in another good.
As income rises the demand for this type of good goes down.
The ________ effect describes the tendency of people to substitute cheaper goods for more expensive ones.
If the price of an inelastic good increases, then total revenue ________.
A perfectly_____ demand curve has the characteristic that even the slightest change in price causes the quantity demanded to be zero.
If the costs of the inputs for a product increase, the supply curve will shift in what direction.
Down
What is the total utility of purchasing two digital apps in the marginal utility example of 2 down.
What is the marginal utility of purchasing two digital apps if purchasing one digital app has a total utility of 20 and the purchasing the second app is 22.
The longer the time period for adjustment of prices, the elasticity of supply will be ________.
This curve measures measures all of the combinations of goods that can be purchased at fixed prices with a specific budget.
The ______ price of a good is the the price of the good in comparison to the price of another good..
A change in this for a good causes movement along the demand curve.
The cross price elasticity of two complementary goods will be_______.
The Law of Demand States that as the price of a good goes up, people buy____ of the good.
When the demand for a good decreases and the supply increases. equilibrium price will________.