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Elasticity and Equilibrium Flashcards | StudBud
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Elasticity and Equilibrium
Elasticity and Equilibrium
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Answers
1
All of the following can influence the elasticity of demand
except...
necessity vs. luxury goods
availability of substitutes
price relative to income
mobility of inputs
2
If prices of a good are lower than the equilibrium price what will be the result?
no one will buy it
eternal happiness
shortage
surplus
3
A market will have a surplus if the supply of a good is lower than the demand for it.
True
False
4
If there is a shortage in a market, businesses will do what to reach equilibrium?
dance
raise prices
lower prices
nothing
5
When the supply of a product is greater than the demand for it.
elastic supply
elastic demand
shortage
surplus
6
If the price of a good increases, and the total revenue for that good also increases.
inelastic
elastic
7
All of the following can influence supply elasticity
except...
necessity vs. luxury goods
mobility of inputs
availability of inputs
storage capacity
8
When supply and demand are balanced in a market.
market equilibrium
surplus
demand elasticity
disequilibrium
9
If the price of a good drops, and total revenue of the good goes up.
elastic
inelastic
10
If the price of a good goes up, but demand stays basically the same.
inelastic
elastic
11
If there is a surplus of a good, to reach equilibrium stores will...
do nothing
lower prices
raise prices
throw away their extra products