Microeconomics 1

Question 1

what is demand?

Accepted Answer

amount buyers are willing & able to buy at a given time & £

Question 2

Which of the following is NOT a change in Demand Shifter?

Accepted Answer

Price of the Product

Question 3

When supply is greater than demand, you get a________

Accepted Answer

Surplus

Question 4

Who dictates demand in a free market economy?

Accepted Answer

Consumer

Question 5

The place where supply meets demand is called______

Accepted Answer

equilibrium

Question 6

What is extension of demand

Accepted Answer

the increase in demand due to the fall in price

Question 7

Goods that are typically used together

Accepted Answer

Complementary goods

Question 8

Law of Supply

Accepted Answer

The higher the price the larger the quantity produced.

Question 9

Which would cause the shift shown in the graph? (Product is strawberry)

Accepted Answer

Bad weather leads to smaller crop

Question 10

If a company is expected to raise the price of products next month, the current demand will...

Accepted Answer

Increase (Shift right)

Question 11

If the price of gas rises 20%, but people still buy the same amount, demand for gas is?

Accepted Answer

Inelastic

Question 12

What is the fundamental reason people must choose which goods to buy and consume ?

Accepted Answer

Scarcity

Question 13

What is the contraction of demand?

Accepted Answer

the fall in the quantity demanded due to a rise in price

Question 14

In which market structure would you see a single seller, selling a unique product?

Accepted Answer

Monopoly

Question 15

At what prices would you have a shortage?

Accepted Answer

Below equilibrium

Question 16

If nothing else changes, a lower price will cause a ______

Accepted Answer

Higher quantity demanded

Question 17

How do you calculate price elasticity of demand?

Accepted Answer

% change in quantity / % change in price

Question 18

The basic economic problem of all economies is one of deciding how to make the best use of

Accepted Answer

Limited resources to satisfy unlimited wants

Question 19

Refers to the degree of responsiveness in supply or demand in relation to changes in prices

Accepted Answer

Elasticity

Question 20

The law of demand says that people will want to buy______ of something as the price goes up

Accepted Answer

Less

Question 21

What is the equilibrium price?

Accepted Answer

1,00

Question 22

Is this a diagram explaining the Law of Demand?

Accepted Answer

Yes

Question 23

Economics is a social science that studies the allocation of...

Accepted Answer

Scarce Resources

Question 24

If the government set a max price at $0,50, what would it be called and what would be the result?

Accepted Answer

Price Ceiling - Shortage

Question 25

What is the normal rule of demand?

Accepted Answer

as price goes up demand goes down

Question 26

Who dictates supply in a free market economy?

Accepted Answer

Both Producer and Sellet

Question 27

If the price of strawberries rises, what will happen?

Accepted Answer

Quantity Demanded will go down

Question 28

What situation can lead to exess demand?

Accepted Answer

Low prices

Question 29

Which of the following goods has a negative income elasticity of demand

Accepted Answer

bus ticket

Question 30

A good that is used in place of another good is?

Accepted Answer

Substitute Good

Question 31

Does this diagram correctly show Elastic Demand?

Accepted Answer

Yes

Question 32

If the government set a minimum price at $3,00, what would it be called and what would be the result?

Accepted Answer

Price floor - Surplus

Question 33

A group of buyers and sellers of particular good or servive

Accepted Answer

Market

Question 34

Which of the following would result in an increase of demand?

Accepted Answer

Increase of Consumers

Question 35

Determines demand and suply

Accepted Answer

Market economy

Question 36

The law of Supply says producers will offer _______ of their product as price goes up

Accepted Answer

more

Microeconomics 1

Questions 36

Microeconomics 1

Questions 36