Unit 2: Supply and Demand

Fixed costs plus Variable costs equal an entrepreneur's:

The purpose of rationing during World War II was to ensure that

If we have "unitary elasticity," what happens if prices go up 20%

My store sells a product whose demand is very elastic. What will happen if I raise my prices?

Which of these is an example of a price floor?

When should a bakery stop making more cookies?

What does the Latin phrase "ceteris paribus" (all other things being equal) mean?

For a shoe factory, the price of leather is a:

The law of substitution says that if the price of butter goes up...

What happens if hurricanes destroy many Florida orange groves?

If a new worker earns $200 a day, but digs $300 of coal a day, should the mine owner hire him?

Millions of Italians move to America. What happens to the demand curve for pasta and red wine?

Which of these products would it be easiest to increase the supply of quickly?

If the price of sugar goes down, how does that affect a bakery?

What is the definition of demand?

According to the Law of Demand, if the price of ice cream goes down, what will consumers do?

Which of these is a FIXED cost for a Mexican restaurant?

Quality, location, service, status and physical characteristics are all examples of:

If a demand curve is fairly flat, that means demand is...

If the government puts a price ceiling on a good, and keeps prices lower than equilibrium, what will usually happen?

If the supply curve for paper shifts to the right, what will happen?

Supply will be most elastic in businesses...

Here's a supply curve for potatoes. What's happening at point X?

Poor people buy more cigarettes than rich people. That means cigarettes are:

The demand for things you NEED to stay alive is...

A sudden disaster leading to an unexpected shortage of an essential good is called:

Which of these shows how much a firm will produce at certain price levels?

What often arises when the government rations certain goods?

If the price of coffee goes way up, what else will probably happen?

According to the Law of Supply, if the price of ice cream goes way up, what would you expect to happen?

When we opened up trade with Cuba a few years ago, what happened to the supply curve for cigars?

If there is a big surplus of blue jeans, what will Levi's, Wrangler and Old Navy have to do?

If demand for Cheetos is elastic, what will happen if the price goes up?

In the short run, demand for gasoline is inelastic. Does it get more elastic over time?

What is the relationship between hamburger meat and ketchup?

The point at which the supply and demand curves intersect is called:

When people have more money, their buying habits may change. This is called:

If there's a big shortage of beer, what will the government probably do?

Age, race, income, education and religion are all part of:

If bikes are a "normal good," what will happen when people in France earn more money?