Market Equilibrium is calculated, to...

identify the most efficient price and quantity of a product

To manage a surplus of goods a firm is likely to:

reduce the price to increase sales

An increase in supply may be due to

An improvement in technological progress

A decrease in demand for a good would usually result in

decrease in price and the amount sold

A surplus exists when:

the supply of goods exceed the demand

studbud

Supply & Demand

13 termsStudBud Administration9 plays

Imported from external platform

Flashcards13 cardsFPractice quizPHost liveL

Questions 13

Answers

1
Market Equilibrium is calculated, to...
manage a surplus
identify external market forces
identify the left over inventory
identify the most efficient price and quantity of a product
2
To manage a surplus of goods a firm is likely to:
reduce the price to increase sales
increase the price to reduce sales
stop production
wait for market forces to influence demand
3
The Demand curve slopes in which direction?
Vertical
Downwards to the right
Horizontal
Upward to the right
4
The point 'X' represents:
A Shortage
A surplus
Equilibrium Price
Elasticity
5
a factor that will NOT cause an extension in supply, could be:
a rise in labour productivity
a reduction in production costs
A rise in the output price
a fall in price of other goods and services
6
the supply curve in the image would be considered:
inelastic
rubber
elastic
unit price elastic
7
the demand curve represents
producers
retail sector
customers
the suppliers
8
An increase in supply may be due to
a fall in the price of a substitute good
pessimistic producer expectations about the future
An improvement in technological progress
An increase in consumer incomes
9
A decrease in demand for a good would usually result in
Increrase in price to stimulate demand
decrease in supply because of the falling price
decrease in price and the amount sold
a decrease in sales and no change in price
10
Elasticity of demand >1 is considered:
Elastic
Unit Price Elastic
Infinite
Inelastic
11
A surplus exists when:
when market forces slow production
the supply of goods exceed the demand
when the price of goods rise
when the demand is greater than the supply
12
With an ageing population the Australian economy may see an increase in demand for:
gymnasiums
primary schools
lawn bowling clubs
motor cycles
13
Perfect price inelasticity of demand is denoted by
a demand curve with a steep slope
A Vertical demand curve
a demand curve with a rectangular hyperbola
A Horizontal demand curve

Supply & Demand Flashcards | StudBud