Home Library Explore SAT

Home Library Explore SAT

Supply and demand (BS1547 7/1) Flashcards | StudBud

Explore/Supply and demand (BS1547 7/1)

Supply and demand (BS1547 7/1)

5 terms·StudBud Administration·592 plays

A #quiz to test understanding of competitive market equilibrium (CORE topic 8)

Flashcards5 cardsFPractice quizPHost liveL

Questions 5

Answers

1
In a competitive market the division of consumer and producer surplus depends on...?
the elasticities of supply and demand
the relative bargaining power of firms and consumers
how high the market price is
the bargaining power of consumers
2
A firm who is a price taker...?
can compete by differentiating its brand
has to accept the price in the market and set quantity
is able to adjust price and quantity to maximise profit
is able to adjust its price to suit market conditions
3
If the government imposes a 15% tax on new cars the effect of this...?
will raise the price to consumers by 15%
will reduce the demand for used cars
can be shown by the supply curve shifting backwards
can be shown by the demand curve shifting backwards
4
If the firms in a competitive market are in long run equilibrium...?
All are able to make some economic rent
All firms make normal economic profit
Only the largest ones survive
Some make economic rent and some only normal economic profit
5
For an individual competitive firm the supply curve is...?
isn't defined because it picks price at maximum profit
its downward sloping marginal cost curve
its upward sloping marginal cost curve
its upward sloping average cost curve