Unit 2 Review: Supply, Demand, and Market Forces

Question 1

Demand for which of the following goods would be considered inelastic?

Accepted Answer

Gasoline

Question 2

The determinants of supply include all of the following except...

Accepted Answer

Tastes and preferences

Question 3

When the price of a good rises, people tend to buy less. This is an example of which of the following

Accepted Answer

law of demand

Question 4

Suppose you buy Coke because the price of Pepsi has increased. Which explains why?

Accepted Answer

substitution effect

Question 5

Point Y on the PPF represents

Accepted Answer

unattainable production possibility

Question 6

A demand curve has a negative (downward) slope because

Accepted Answer

price and quantity demanded are inversely related

Question 7

The law of demand says that when the price of a good or service increases

Accepted Answer

the quantity demanded decreases

Question 8

Scarcity is defined as...

Accepted Answer

Unlimited wants with limited resources

Question 9

If consumers buy a lot more when there is a small decrease in price, we would consider the demand for that item to be:

Accepted Answer

elastic

Question 10

Which of these determinants could shift the demand curve for Honda Accords?

Accepted Answer

Prices of Toyota Corollas

Question 11

Opportunity cost can best be described as

Accepted Answer

the value of the next best alternative

Question 12

The market is for Hondas. Which determinant of demand would be affected if the price of Toyotas were to decrease

Accepted Answer

Price of related goods

Question 13

If the market is for new houses and carpenters are hard to find

Accepted Answer

fewer homes will be produced and sold at higher prices

Question 14

Which of the following will not shift the demand curve for strawberries?

Accepted Answer

a decrease in the price of strwbarries

Question 15

Price floors cause a(n)

Accepted Answer

Surplus

Question 16

What would be the effect on price if demand decreased?

Accepted Answer

Price will decrease

Question 17

Economists criticize minimum wage laws for causing a surplus of labor. These laws are a type of

Accepted Answer

Price floor

Question 18

Which of the following is true at equilibrium?

Accepted Answer

Quantity Supplied=Quantity demanded

Question 19

What would be the effect on price if supply increased?

Accepted Answer

Price would decrease

Question 20

If consumers buy a lot more when there is a small decrease in price, demand is

Accepted Answer

Elastic

Question 21

Inferior goods tend to be

Accepted Answer

Low cost options for saving money

Question 22

If good B is a complement to good A, then an increase in the price of B

Accepted Answer

Decreases the demand for A

Question 23

What would be the effect on demand if the price increased?

Accepted Answer

the curve does not shift, qunatity demanded decreases

Question 24

In the ____________ all resources are variable.

Accepted Answer

long run

Question 25

The demand curve for shoes represents the quantity demanded of shoes

Accepted Answer

at each possible price of shoes

Question 26

Which is the best example of a complement to an Apple Iphone?

Accepted Answer

Airpods

Question 27

Which of the following is not an effect of a price floor?

Accepted Answer

lower prices

Question 28

A production cost that DOES NOT change with output

Accepted Answer

fixed cost

Question 29

In the ____ firms do not have time to respond to price increases.

Accepted Answer

short run

Question 30

If the price is _________________ equilibrium there will be a _________________.

Accepted Answer

below, shortage

Question 31

The term that states you receive less satisfaction from each additional unit you consume

Accepted Answer

Law of Diminishing Marginal Utility

Question 32

The 1st impact to the market for Oreo's if the price of sugar increases

Accepted Answer

Supply shifts left

Question 33

The goal of price ceilings is to help

Accepted Answer

low income consumers

Unit 2 Review: Supply, Demand, and Market Forces

Questions 33

Unit 2 Review: Supply, Demand, and Market Forces

Questions 33