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Supply and Demand Unit Review Flashcards | StudBud
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Supply and Demand Unit Review
Supply and Demand Unit Review
24 terms
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StudBud Administration
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547 plays
econ
Flashcards
24 cards
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Practice quiz
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Questions
24
Answers
1
What happens to price and quantity, in the graph below?
P↑ Q↓
P↓ Q↑
P↑ Q↑
P↓ Q↓
2
What direction to you shift if supply increases?
left
right
3
What happens to price and quantity, in the graph below?
P↑ Q↑
P↑ Q↓
P↓ Q↓
P↓ Q↑
4
Shifter example on socks: Sneakers go on sale!
Substitute Goods
Change in Population
Complementary Goods
Fads
5
Shifter Example for strawberries: Blueberries linked to E Coli outbreak!
Change in number of producers
Complementary Goods
Change in population
Substitute Goods
6
Shifter Example for pizza: Cheese prices continue to rise for the 3rd month.
change in input costs
Change in consumer expectation of price
change in producer expectation of price
fads or taste
7
Shifter Example on perfume: Kanye West makes commercial for a new men's fragrance.
Fad or taste
Change in consumer expectation
Change in input costs
Change is income
8
Does this graph show a price floor or price ceiling?
Price Floor
Price Ceiling
9
Shifter Example on corn: Drought hits the midwest!
# of Producers
Technology
Change in Conditions
Producer Expectation of Price
10
Shifter Example on vacations to Disney: Unemployment rises for the 5th straight month!
Change in Consumer Expectation of Price
Change in Producer Expectation
Fads
Change in Income
11
What happens to price and quantity, in the graph below?
P↑ Q↓
P↓ Q↑
P↑ Q↑
P↓ Q↓
12
as price decreases...
supply increases
demand decreases
supply decreases
a surplus occurs
13
Shifter Example on bread: Price of wheat is expected to rise in the winter months.
Change in producer expecation
government policy
change in technology
Change in consumer expectation
14
Shifter Example on insulin pump: Subsidy paid to drug company to make affordable insulin pump.
Substitute good
Change in # of producers
Complementary good
Government Policy
15
What direction do you shift if supply decreases?
left
right
16
What direction do you shift is demand increases?
left
right
17
As price increases...
demand increases
a surplus occurs
supply decreases
demand decreases
18
What happens to price and quantity, in the graph below?
P↓ Q↓
P↑ Q↑
P↓ Q↑
P↑ Q↓
19
Shifter Example on the car market: Ford Motors goes Bankrupt!
Change in the # of producers
Change in producer expectations on price
Change in input costs
Fad or taste
20
Shifter Example on housing: 100,000 Syrian refugees expected to arrive any day to Wilmington.
Change in consumer expectation on price
Change in the number of producers
Change in input costs
Change in population
21
Shifter Example for fries: New, efficient potato peeling machine installed in all fry factories
Substitute goods
Change in # of producers
Fads or tastes
Change in technology
22
Shifter Example on soda: Excise tax placed on all soda produced, starting in now.
Government involvement
Change in income
Change is technology
Change in producer expectation of price
23
Does this graph show a price floor or price ceiling?
Floor
Ceiling
24
What direction do you shift if demand decreases?
left
right
