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Unit 2: Supply, Demand, Price Flashcards | StudBud
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Unit 2: Supply, Demand, Price
Unit 2: Supply, Demand, Price
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Unit 2 test review
Flashcards
18 cards
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Questions
18
Answers
1
In a market economy, a low price is a signal for
producers to supply less, consumers buy more
producers to supply less, consumers buy less
producers to supply more, consumers buy more
producers to supply more, consumers buy less
2
Prices perform the allocation function well because of all of the following EXCEPT
They are familiar
They allow rationing
They provide consumers with information to make decisions
They are flexible
3
What graph shows the market for cars if the zombie apocalypse occurs
Graph B
Graph C
Graph D
Graph A
4
What is the result of a price being set at the level in the graph?
Shortage
Equilibrium
Limbo
Surplus
5
What graph shows what happens to the market for butter if the price of margarine goes up?
Graph C
Graph D
Graph A
Graph B
6
What would cause this change on the graph?
A new producer enters the market
Decrease in cost of production
Technology improves production
Increase in cost of production
7
Which graph shows what would happen to the market for wheat if a drought destroys most crops?
Graph A
Graph D
Graph B
Graph C
8
According to this demand curve, how many movies will be demanded at a price of $10?
400
1000
800
600
9
When does market equilibrium (market clearing price) occur?
When quantity supply is greater than quantity demanded
When quantity demanded is greater than quantity supplied
When quantity supplied is equal to quantity demanded
Never
10
What is shown on this graph?
price basement
price ceiling
price roof
Price floor
11
This graph shows which of the following changes?
Increase in demand
Increase in supply
Change in quantity demand
Decrease in demand
12
Which of the following are complements?
movies and tv shows
butter and margerine
CDs and mp3s
milk and cereal
13
What happens to the equilibrium price and quantity with the changes in this graph?
Price decreases and quantity increases
Both price and quantity increase
Price increases and quantity decreases
Both price and quantity decrease
14
A surplus occurs when
supply is equal to demand
supply is greater than demand
never- they're a myth!
demand is greater than supply
15
For most products, an increased price results in
demand for more products
increased demand for compliments
demand for fewer products
reduced demand for substitutes
16
What happens to the market for grapes if a new machine picks grapes faster?
Graph D
Graph C
Graph A
Graph B
17
What happens to a product when the price of a complementary good increases?
demand for that product decreases
demand for that product increases
It is insulted!
demand stays the same
18
What could have caused the movement on this graph?
decrease in population
the price of the product changes
increase in income
change in taste so the item is less popular
