A decrease in a non-price determinant of supply will

raise the price and lower quantity demanded

A decrease in a non-price determinant of demand will

lower the price and quantity supplied

A legally established minimum price a seller can charge

A legally established maximum price a seller can charge

An increase in a non-price determinant of demand will

raise the price and quantity supplied

An increase in a non-price determinant of supply will

lower the price and increase the quantity demanded

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Markets in Action

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An introduction to markets

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Questions 14

Answers

1
An example of a negative externality is
neighbour's consumption of loud music
All
noise pollution
smoke from a factory
2
A decrease in supply creates a temporary shortage
False
True
3
A decrease in a non-price determinant of supply will
lower the price and increase quantity supplied
raise the price and lower quantity supplied
lower the price and increase quantity demanded
raise the price and lower quantity demanded
4
Price ceilings create
excess Qs at the ceiling price
excess Qd at the ceiling price
5
A decrease in a non-price determinant of demand will
lower the price and quantity demanded
lower the price and quantity supplied
raise the price and quantity supplied
lower the price and quantity demanded
6
A decrease in demand creates a temporary surplus
True
False
7
A price floor is
A legally established minimum price a seller can charge
A legally established maximum price a seller can charge
8
Price floors create
excess Qd at the floor price
excess Qs at the floor price
9
A price ceiling is
A legally established maximum price a seller can charge
A legally established minimum price a seller can charge
10
An increase in supply creates a temporary shortage
False
True
11
An increase in demand creates a temporary shortage
True
False
12
Government expenditure on schooling and health is an example of a positive externality
False
True
13
An increase in a non-price determinant of demand will
raise the price and quantity demanded
lower the price and quantity supplied
raise the price and quantity supplied
lower the price and quantity demanded
14
An increase in a non-price determinant of supply will
lower the price and increase the quantity supplied
raise the price and lower quantity demanded
lower the price and increase the quantity demanded
raise the price and lower quantity supplied

Markets in Action Flashcards | StudBud