Answer to Question #198943 in Microeconomics for njabulo

Question

Identify the relevant economic concept which can be matched to the descriptions below. Simply give the question number and the relevant terms/words in each case.

Q.1.1 Government sets a price level in a market that is aimed at assisting consumers.

Q.1.2 Quantity demanded is less than quantity supplied.

Q.1.3 A situation where the quantity supplied of a good is highly sensitive to a change in the price of the good.

Q.1.4 A curve showing combinations of two goods that provide a consumer with a constant amount of utility.

Q.1.5 The addition to total output when one more worker is hired, ceteris paribus.

Answer 1

Q.1.1) Government Intervention (Price Control)

Q.1.2) Excess Supply

Q.1.3) Price Elasticity of Supply

Q.1.4) An Indifference Curve

Q.1.5) The Law of Diminishing Marginal Returns.