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Regular Econ Supply & Demand
Regular Econ Supply & Demand
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Chapters 5 & 6 Supply and Supply and Demand Together. EMC Economics New Ways of Thinking
Flashcards
56 cards
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Practice quiz
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Host live
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Questions
56
Answers
1
If price drops what will happen based on graphs
a shift from S1 to S2
movement from A to B
movement from C to B
a shift from S1 to S3
2
Price is the only thing that can affect
Equilibrium
Quantity Supplied and Quantity Demanded
Demand
Supply
3
A price ceiling must be placed ______ equilibrium in order to change the market
Below
Above
4
In the market for chocolate, disease in cocoa trees reduces the size of the harvest
Demand shifts right
Supply shifts right
Supply shifts left
Demand shifts left
5
Price controls (Ceilings and Floors) are
Bad for an economy
Good for an economy
Useful for the economy
Benefits for the government
6
If furniture makers are informed that the price of wood has doubled
Graph C
Graph D
Graph B
Graph A
7
Which of the following might have caused the demand curve to shift right?
Consumer preferences for the product improved
Resource costs dropped
The number of consumers fell
Consumer income fell
8
Which graph represents the market for landline phone service as customers opt for cell phones?
Graph B
Graph D
Graph A
Graph C
9
If there is no, or almost no response to a change in price then we have
Unit Elasticity
Inelasticity
Elasticity
Mayhem
10
Supply curves (generally)
slope upward from right to left
slope upward from left to right
slope downward from right to left
slope downward from left to right
11
In the market for wheat, new technology improves farming and harvesting techniques
Supply shifts right
Demand shifts left
Supply shifts left
Demand shifts right
12
If there is a greater supply of housing than there is demand we can expect
None of these
Rent to rise
Rent to remain the same
Rent to fall
13
If a govt imposes a pollution charge to the coal industry, what will happen based on graphs
a shift from S1 to S2
movement from A to B
a shift from S1 to S3
movement from C to B
14
T or F: when a price floor is imposed, QS will be less than it was at the EQ price
False
True
15
When supply decreases the supply curve shifts
Left
Right
16
If more sellers enter the market, what will happen based on graphs
movement from A to B
a shift from S1 to S2
a shift from S1 to S3
movement from C to B
17
When demand increases, the demand curve shifts
Right
Left
18
When supply shifts to the left, what happens to market price and quantity?
They both go down
Price rises, quantity falls
They both go up
Price falls, quantity rises
19
Market Clearing price is
Equilibrium
Highest price possible
Lowest price possible
Zero
20
If supply is low and the price increases what will happen based on graphs
movement from C to B
a shift from S1 to S2
a shift from S1 to S3
movement from A to B
21
Which of these IS NOT a factor affecting supply
Quotas/Subsidies
Technology
Preferences
Resource Prices
22
Which of these IS NOT a factor affecting supply
Consumer Income
Future Price
Number of Sellers
Taxes
23
A supply schedule is
a table of P at QS of a good
a graph of P at QS of a good
a table of P at QD of a good
a graph of P at QD of a good
24
According to the law of demand, as price rises
Producers sell less
Producers sell more
Consumers buy more
Consumers buy less
25
Is the image in the graph a price ceiling or a price floor?
Price Ceiling
Price Floor
26
If the demand curve shifts left, what will happen to the market price and quantity?
They both go up
They both go down
Price rises, quantity falls
Price falls, quantity rises
27
Which graph represents the market for electric cars, as the number of producers increases?
Graph B
Graph A
Graph C
Graph D
28
What is the market supply curve?
the curve of a single grocery store
one firm's presence in the market
all firm's supply curves added together by QS
all buyers supply curves added together by QS
29
In the market for car tires, the cost producers pay for rubber and steel belting rises
Supply shifts left
Supply shifts right
Demand shifts left
Demand shifts right
30
Which two graphs show a shortage because of a shift in S or D? (Hint: P increase)
Graph A and D
Graph B and D
Graph A and B
Graph B and C
31
If there is some response, but a small amount, to a change in price then we have
Elasticity
Mayhem
Inelasticity
Unit Elasticity
32
%ΔQS/%ΔP is
a formula for the supply
a formula for the elasticity of supply
a formula for the elasticity of demand
a formula for the demand
33
In the market for soda, consumers cut back on drinking sugary drinks
Supply shifts right
Demand shifts left
Demand shifts right
Supply shifts left
34
At a price floor, the market condition that results is called a(n)
Equilibrium
Shortage
Surplus
35
In order for there to be supply, the suppliers
must have the willingness and ability to transport
must have the willingness and ability to leave the market
must have the willingness and ability to produce
must have the willingness and ability to buy
36
If consumer income rises, how would the demand curve change?
It will shift left
It will not change
It will shift right
Consumers will buy less
37
In the market for new homes, consumer incomes rise
Supply shifts left
Demand shifts left
Supply shifts right
Demand shifts right
38
Which of the following is true about the market clearing (equilibrium) price?
Quantity supplied is greater than quantity demanded
Quantity demanded equals quantity supplied
Quantity demanded is greater than quantity supplied
39
What kind of relationship does demand have?
Market
Equal
Inverse
Direct
40
If there is an enormous response to a change in price then we have
Elasticity
Mayhem
Inelasticity
Unit Elasticity
41
Which graph represents the market for bottled water by consumers in Flint, MI?
Graph B
Graph A
Graph C
Graph D
42
What does a vertical supply curve mean?
Unlimited amounts of good available at different prices
a fixed amount of the good is available for different prices
that there is not enough supply to meet demand
no supply is available at all
43
If a govt offers a wheat farmer a subsidy to plant more, what will happen based on graphs
movement from C to B
a shift from S1 to S3
a shift from S1 to S2
movement from A to B
44
Which 2 graphs show a surplus because of a shift in S or D? (Hint: P decrease)
Graph B and C
Graph A and B
Graph B and D
Graph A and D
45
When the supply curve shifts right, what happens to market price and quantity?
They both fall
They both rise
Price falls, quantity rises
Price rises, quantity falls
46
T or F: when a price ceiling is put in place QD will be higher than it was at the EQ price
False
True
47
A decrease in supply will cause the equilibrium price to
Rise
Fall
48
When QS of a good rises when the P of the good rises
Economic Principle
Law of Supply
Law of Demand
Law of Diminishing Marginal Utility
49
What kind of relationship does supply have?
Inverse
Equal
Market
Direct
50
Is the following graph showing a price ceiling or price floor?
Price floor
Price ceiling
51
An increase in demand will cause the equilibrium price to
Fall
Rise
52
What is the best explanation for the change you see in the supply curve?
Subsidies to businesses fell
Production technology improved
Taxes rose
Resource costs rose
53
Which of these things can cause a shift in the supply curve
All of these
Number of Sellers
Weather
Technology
54
Who or what is responsible for the allocation of resources
Consumers
Government
Producers
Market and Prices
55
At any price above the equilibrium price
QD = QS
QD > QS
QD < QS
56
According to the law of supply, as prices fall
Quantity demanded by consumers falls
Quantity supplied falls
Quantity supplied does not respond
Quantity supplied rises
