The price of movie tickets goes from 7 to 9. What is the most likely effect of the change in P

The quantity demanded of movie tickets will decrease

Which of these events would indicate a movement along a supply curve for batteries?

Raise the price of AA batteries from 3.50 to 3.95 a set

What is a basic principle of the Law of Demand

When a good's price is lower, people will buy more of it

How is future price related to current demand?

If the price is expected to rise, current demand will rise

What happens to a market in equilibrium when there is an increase in supply?

Qty supplied will exceed qty demanded, price will drop

If a business owner becomes aware of a shortage in the market they are likely to

Increase supply more and raise the price

What happens to demand for storm-related supplies when a major storm is being forecasted?

A shift in the demand curve to the right

Which of the following describes a way that the minimum wage and rent control are similar?

Both involve gov't intervention in the marketplace

Substitution effect; friends will respond to a price raise of their favorite post-game snack by

Choosing another snack instead of their favorite snack

A shift in the demand curve means which of the following?

A change in demand at every price

Under what conditions might a baker have to throw out many muffins at the end of the day?

A surplus, when QD is lower than QS

Which of the following events could cause the demand curve for sports magazines to shift right?

BBplayer interests 1000s in professional sports for 1st time

On which kinds of goods do governments generally place price ceilings

Those that are essential but too expensive for some consumer

Which of the following is the best example of the Law of Supply?

Sandwich shop increases the # supplied when prices increase

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Midterm: Supply and Demand

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Topic 3: Supply and Demand

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Questions 26

Answers

1
The price of movie tickets goes from 7 to 9. What is the most likely effect of the change in P
The demand curve for movie tickets will move left
The quantity demanded of movie tickets will decrease
The quantity demanded of movie tickets will increase
The demand curve for movie tickets will move right
2
Name of the smallest amount that can legally be paid to most workers for an hour of work
Equilibrium Price
Price Floor
Minimum Wage
Supply Cost
3
Which of these events would indicate a movement along a supply curve for batteries?
Raise the price of AA batteries from 3.50 to 3.95 a set
Workers at the factory go on strike and stop production
New trade agremnt enables stores to import foreign batteries
Must spend more $ on environmentally sound trash disposal
4
What shows the quantities of products demanded at each price by all consumers in a market?
A market pricing list
An elasticity and consumption list
A market demand schedule
A schedule of consumer prices
5
What is a basic principle of the Law of Demand
Services are of interest in the same way that goods are
Everyone has a limited income that they will spend
The higher the price, the more people will want the good
When a good's price is lower, people will buy more of it
6
How is future price related to current demand?
If the price is expected to rise, current demand will drop
Future price is not related to current demand
If the price is expected to rise, current demand will rise
If the price is expected to fall, current demand will rise
7
When a consumer is able and willing to buy a good/service, he/she creates?
Demand
Allocation
Elasticity
Consumption
8
John responds to price increase for transportation by buying fewer clothes, he is demonstrating
Horizontal Demand
An individual demand schedule
The Substitution Effect
The Income Effect
9
What happens to a market in equilibrium when there is an increase in supply?
Qty demanded will exceed qty supplied, price will drop
Excess supply means producers will make less of the good
Undersupply means that the good will become very expensive
Qty supplied will exceed qty demanded, price will drop
10
What factor causes firms to increase production when the price of a good or service goes up
Desire for profits
Reduction in costs
Increase in demand
Need to unload inventory
11
If a business owner becomes aware of a shortage in the market they are likely to
Reduce supply and lower the price
Reduce supply and raise the price
Increase supply and lower the price
Increase supply more and raise the price
12
What happens to demand for storm-related supplies when a major storm is being forecasted?
A change downward along the original demand curve
A change upward along the original demand curve
A shift in the demand curve to the left
A shift in the demand curve to the right
13
Which of the following describes a way that the minimum wage and rent control are similar?
Both are price floors
Both involve the profit incentive at work in the marketplace
Both are price ceilings
Both involve gov't intervention in the marketplace
14
How many equilibrium points can exist at the same time on a combined supply and demand graph?
Two
One
An infinite number
Three
15
Of the following whose price goes down because of improvements in technology?
Running Shoes
Cell Phones
Hard-bound books
Hamburgers
16
Substitution effect; friends will respond to a price raise of their favorite post-game snack by
Buying less of their favorite snack
Choosing another snack instead of their favorite snack
Working extra hours to make more money
Buying more of their favorite snack
17
A shift in the demand curve means which of the following?
A change in demand at every price
A decrease in both price and quantity demanded
A change in consumer income
A rise in prices
18
Which of the following goods would likely be bought in the same qty even if it doubled in price
Pencils
Telephones
Diamond earrings
Computers
19
Under what conditions might a baker have to throw out many muffins at the end of the day?
A shortage when QD is lower than QS
A surplus, when QD is lower than QS
A shortage, when QS is lower than QD
A surplus, when QS is lower than QD
20
When buyers will purchase exactly as much as sellers are willing to sell
Price Floor
Equilibrium
Excess Demand
Supply and Demand
21
Rent control is a type of
Price Ceiling
Price Floor
Surplus
Rationing
22
Which of the following events could cause the demand curve for sports magazines to shift right?
Price of an issue of a popular computer game mag 2.95 - 3.95
BBplayer interests 1000s in professional sports for 1st time
Local library buys a subscription to sports mag for reading
The publisher cuts the price from 3.95 to 2.50
23
In which direction does the supply curve shift when input costs increase?
Down
Right
Up
Left
24
On which kinds of goods do governments generally place price ceilings
Those that are essential but too expensive for some consumer
Those that are cheap but could become more expensive w/o
Those that are essential and cheap
Those that are not necessary but have become customary
25
Which of the following is the best example of the Law of Supply?
Milling company builds a new factory to process flour
A catering company buys a new dishwasher to make work easier
Food producer increases the # of acres of wheat he grows
Sandwich shop increases the # supplied when prices increase
26
What kind of chart lists the quantity of a good that a person will buy at different prices
Demand Curve
Market Demand Curve
Market Demand Schedule
Demand Schedule

Midterm: Supply and Demand Flashcards | StudBud