What is a substitute good?

A good that replaces a different good.

The impact of a subsidy on supply will be?

Lower price and higher quantity

Apples and pears are substitute goods. Which of the following is incorrect given a rise in the price of Apples?

The demand for pears will decrease.

Consumer sovereignty can be defined as:

Consumer freedom to make choices about products/services

When price increases the amount of goods produced increases. This is what?

The Law of Supply, Good business practice

What would be the most likely cause of a decrease in supply?

Excise tax imposed on cigarettes

The impact of tax on Supply will be?

Price increases, quantity produced decreases

What is a complementary good?

A good that goes with another good.

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Supply and Demand

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Basic economic terms used to learn supply and demand. #supplyanddemand

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Questions 16

Answers

1
The movement along the demand curve is called what?
Change in Quanitity Demanded
Change in Demand
Change in Quantity Supplied
2
The sum of all the wants in a market is what?
Market Demand
The Law of Demand
Revenue
3
What is a substitute good?
A good that replaces a different good.
A good that makes up part of a good.
A good that goes with another good.
4
The impact of a subsidy on supply will be?
Higher price
Lower price and higher quantity
Higher quantity
Higher price and lower quantity
5
The following goods can be classed as?
Substitute good
Basic goods
Complementary goods
Inferior goods
6
The movement along the supply curve is called what?
I've got no idea
Change in Supply
Change in Quantity Demanded
Change in Quantity Supplied
7
Apples and pears are substitute goods. Which of the following is incorrect given a rise in the price of Apples?
There is an expansion in supply of pears.
The demand for pears will decrease.
There is an expansion in supply of Apples
The quantity demanded of apples will fall.
8
If the price of a toy monkey falls then the demand curve for toy bears will?
Expand
Decrease
Contract
Increase
9
When price increases the want for that good decreases. This is what?
Market Demand
The Law of Demand
The Law of Supply
10
Consumer sovereignty can be defined as:
The direct relationship between price and quantity demanded.
Resources that producers are willing and able to buy.
The Firms making choices about which goods to produce
Consumer freedom to make choices about products/services
11
When price increases the amount of goods produced increases. This is what?
The Law of Supply
Good business practice
Market Demand
The Law of Demand
12
What would be the most likely cause of a decrease in supply?
Excise tax imposed on cigarettes
A rise in the price of cigarettes
An advertising campaign "Smoking Kills"
Consumers expect prices to rise
13
The impact of tax on Supply will be?
Price and quantity both increase
Price increases, quantity produced decreases
Price increases, quantity increases
Price and quantity produced both decrease
14
What is a complementary good?
A good that makes up a part of a whole good.
Coke and Pepsi
A good that replaces a good.
A good that goes with another good.
15
Which of these will not shift the supply curve for sheep?
Increased taxes
More sellers
Higher prices
Improved production methods
16
Which of these can shift the demand curve?
Changes in production technology
Increased labour prices
Changing trends
Change in price

Supply and Demand Flashcards | StudBud