What does elasticity of demand measure?

how much demand changes in response to a price change

What is the basic principle of the law of demand?

The lower the price, the more people will want the good.

If the price of hot dog buns rises, what would happen in the market for a complementary good such as hot dogs?

Demand for hot dogs would decrease.

According to the law of supply, the higher the price,

the larger the quantity produced.

What is a price ceiling?

A legal maximum on the price at which a good or service may be sold

Which of the following will cause an INCREASE in the SUPPLY of phones?

The cost of metal, a resource needed to produce phones, decreases

A shift in the DEMAND for lemons can be caused by a change in

the tastes and preferences of buyers.

Which of the following would cause the supply of strawberry donuts to decrease?

Production technology breaks down and is no longer usable.

Which of the following scenarios would cause demand for the Peloton Bike to increase?

A famous athlete makes a commercial endorsing Peloton.

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Outcome B Study Quiz-Economics Spring 2021

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Questions 15

Answers

1
What does elasticity of demand measure?
how much price changes in response to a change in demand
how much demand changes in response to a price change
the total cost of production for a firm
how much profit a firm earns
2
According to the market in this graph, what are the equilibrium price and quantity of student magazines?
100 copies at $6 each
250 copies at $5 each
200 copies at $4 each
300 copies at $3 each
3
What is the basic principle of the law of demand?
The lower the price, the more producers will sell the good.
The higher the price, the more people will want the good.
The lower the price, the more people will want the good.
The higher the price, the more producers will sell the good.
4
Which of the following pairs of goods would be considered substitutes?
hot dogs and hot dog buns
spaghetti and sauce
cars and gasoline
coke and pepsi
5
When supply and demand are NOT equal, the market is said to be in a state of…
elasticity.
chaos.
equilibrium.
disequilibrium.
6
If the price of hot dog buns rises, what would happen in the market for a complementary good such as hot dogs?
Supply of hot dogs would decrease.
Demand for hot dogs would decrease.
The market for hot dogs would be unaffected.
Demand for hot dogs would increase.
7
According to the law of supply, the higher the price,
the more consumers are willing to pay.
the more the availability of a good is reduced.
the larger the quantity produced.
the smaller the quantity produced.
8
8. What is the only non-price factor that applies to demand as well as supply?
Technology
Expectations
Input Costs
Prices of Related Goods
9
What is a price ceiling?
A legal minimum on the price at which a good or service may be sold.
A legal maximum on the amount of goods and services that may be sold
A legal maximum on the price at which a good or service may be sold
A legal maximum on the profit at which a seller can receive.
10
Which of the following products likely has the most inelastic demand?
a movie ticket
a medication
a sports car
a cheeseburger
11
Which of the following will cause an INCREASE in the SUPPLY of phones?
Verison offers senior citizen discounts
The income of consumers increases
The cost of metal, a resource needed to produce phones, decreases
The cost of metal, a resource needed to produce phones, increases
12
Shortages can occasionally force suppliers to
decrease their supply.
use allocation methods.
decrease their prices.
13
A shift in the DEMAND for lemons can be caused by a change in
none of the above.
the tastes and preferences of buyers.
the technology used to supply lemons.
the input costs of making lemons.
14
Which of the following would cause the supply of strawberry donuts to decrease?
Production technology has allowed producers to make the donuts quicker.
The price of strawberries decreases.
Strawberry donuts are the latest national fad.
Production technology breaks down and is no longer usable.
15
Which of the following scenarios would cause demand for the Peloton Bike to increase?
A newspaper reports on the terrible conditions in Peloton sweatshops.
The price of the NordicTrack bike, a substitute, decreases
A famous athlete makes a commercial endorsing Peloton.
The price of metal decreases.

Outcome B Study Quiz-Economics Spring 2021 Flashcards | StudBud