Chapter 3 Vocabulary1. The different amounts of a good or service that a buyer would purchase at different prices in a defined time period with all ( ) factors held constant is the buyer’s ( ) for that product.2. In developing a demand ( ) for a product, all non-price factors that influence buyer demand are held ( ) in order to highlight the relationship between the product’s ( ) and the amount of the product a buyer would purchase in a given time period.3. The Law of Demand states that, as the price of a product increases, the quantity of that product demanded by a buyer ( ), and as the price of a product decreases, the quantity demanded ( ). In other words, according to the Law of Demand, there is an ( ) relationship between price and quantity.4. Buyers’ reactions to price changes are based on scarcity and choice: that is, abuyer’s ( ) is limited, or scarce, and there may be ( ) for a good or service available to a buyer.5. A demand schedule may be illustrated as a demand curve in a graph. Typically, a demand curve is ( ) sloping, illustrating the ( ) relationship between price and quantity demanded.6. The different amounts of a good or service that a seller would make available for sale at different prices in a defined time period with all ( ) factors held constant is the seller’s ( ) of that product.7. In developing a supply schedule for a product, all non-price factors that influence buyer demand are held ( ) in order to highlight the relationship between the product’s ( ) and the quantity of the product supplied in a given time period.8. The Law of Supply states that there is a ( ) relationship between price and quantity supplied: as price increases, quantity supplied ( ), and as price decreases, quantity supplied ( ).9. The basic reason for the Law of Supply is the seller’s ability to cover costs andearn a ( ).10. When a supply schedule is illustrated graphically, a typical supply curve is ( ) sloping, indicating a ( ) relationship between price and quantity supplied.11. When the demand and supply schedules or curves of all the individual buyers and sellers in a market are added together, ( ) demand and ( ) supply are determined. The price and quantity at which market demand and market supply curves for a product ( ) are called the product’s ( ) price and () quantity.12. Equilibrium is the point toward which a free market ( ) moves, and at which there is no tendency to price and quantity to ( ).13. A change in quantity demanded or a change in the quantity supplied of a product is shown by a movement ( ) the product’s demand curve or supply curve from one price-quantity to another. A change in quantity demanded or quantity supplied results only from a change in the ( ) of the product.14. A change in a non-price factor influencing the demand or supply of a product causes its demand or supply curves to ( ) to the right or left. This is termed a ( ) in demand or supply.15. When a change in a non-price factor causes buyers to demand more or sellers to supply more of a product at each price, an ( ) in the demand or an () in the supply of the product occurs, and the demand or supply curve shifts tothe ( ).16. When a change in a non-price factor causes buyers to demand less or sellers to supply less of a product at each price, an ( ) in the demand or an ( ) in the supply of the product occurs, and the demand or supply curve shifts tothe ( ).17. Some major non-price factors influencing demand include: ( ) incomes; ( ) about future incomes, prices, or availabilities; the ( ) of related goods and services; the ( ) of the good or service; and the number of ( ) in the market.18. Some major non-price factors influencing supply include: the ( ) of producing the item; ( ) of future market conditions; the ( ) of other products that the seller could produce; and the number of ( ) in the market.19. A ( ) in the price of a product causes a change in the ( ) demanded or the ( ) supplied of the product and is illustrated graphically by a movement ( ) the demand or supply curve. A ( ) in a non-price factor influencing demand or supply causes a change in the ( ) or in the ( ) of the product and is illustrated graphically by a ( ) of the demand or supply curve.20. When there is a change in the demand and/or supply of a product in a market, there is a change in the product’s ( ) price and quantity.21. A price ceiling (upper price limit) keeps prices from ( ) above a certain level, and a price floor (lower price limit) keeps prices from ( ) below a certain level.22. A price ceiling imposed on a market takes effect when the equilibrium price is ( ) the ceiling. When a price ceiling takes effect, the quantity demanded of the product is ( ) than the quantity supplied, and a ( ) develops.23. The measure of the strength of a buyer’s or seller’s response to a price change is referred to as price ( ).24. If buyers or sellers react strongly to a price change, the response is said to be price ( ). If buyers or sellers react weakly to a price change, the response is categorized as price ( ).25. The formula for calculating an elasticity coefficient is: the absolute value of the ( ) change in ( ) divided by the ( ) change in ( ). the formula for determining the percentage change in quantity is: the change in Q (quantity) divided by the base, or starting, ( ). the formula for determining the percentage change in price is: the change in P (price) divided by the base( ).26. A response by either buyers or sellers to a price change is price elastic ifa given percentage change in price leads to a ( ) percentage change in quantity demanded or quantity supplied, or if the elasticity coefficient is ( )than 1. a response to a price change is price inelastic if a given percentage change in price leads to a ( ) percentage change in quantity demanded or quantity supplied, or if the elasticity coefficient is ( ) than 1. A response to a price change is unitary price elastic if a given percentage change in price leads to an ( ) percentage change in quantity demanded or quantity supplied, or if the elasticity coefficient is ( ).27. The main factors determining the price elasticity of demand for a product are: whether the product is a ( ) or a necessity; the ability of buyers to ( ) other goods or services for the product; and the