Economics Activity 3.3

5. When the shift in demand and supply occurs (simultaneously) the effect on market price and quantity cannot be predicted.
6. Occurs because an individual decrease in supply always decreases market quantities and an individual increase in demand always increases market quantities.
7. Occurs when a firm sells different quantities of the same good at different prices. Can be determined by looking at a price per unit basis.
9. The market for inputs like land, labour and capital.
10. When the quantity sellers are willing and able to supply is equal to the quantity the buyers are willing and able to purchase.
12. An example of a (blank) arrangement is the Organization of Petroleum Exporting Countries (OPEC).
13. a type of imperfect market structure that occurs when there are many firms and buyers and differentiated products within the market.
15. The market for final goods and services.
16. Theconcept created by Adam Smith, which states that when buyers and sellers maximize their own self interest, it leads to product distribution and prices that are beneficial to all the members of the community.
18. Putting supply and demand together. Determines prices and quantities in the market.

1. A type of imperfect market structure that occurs when there are few firms or suppliers in the market. Each firm has price setting power; however they must consider how other firms in this market structure will react.
2. Quantity supplied exceeds quantity demanded at any particular price.
3. When demand decreases and supply remains unchanged, both the price and quantity (blank).
4. In this ideal economy there is no market power due to there being many firms, no specialized products, ease of entry into the market and perfect information.
6. In this economy there is some market power due to there being few firms or there being specialized products.
8. A characteristic of a perfect competition occurs when all goods in the market are (blank).
11. A concept that measures a persons satisfaction or happiness with their consumption.
14. When demand increases and supply remains unchanged, both the price and quantity (blank)
17. Quantity demanded exceeds quantity supplied at any particular price.
19. A type of imperfect market structure where there is only one firm and one type of good. This type of market structure has price setting power.
20. A technique used by firms that creates a small obstacle, which buyers with lower marginal benefits, will not be willing to jump over. An example is a mailing rebate