When there is more supply than demand

What are non-price determinants?

Factors that can affect supply and demand, other than price

Suppose there is a new technological advancement making production more efficient. How will this affect supply of goods?

Supply will increase (shift rightward)

What is a non-price determinant of both demand and supply?

A change in future expectations

What is the equilibrium price?

The price at which supply and demand are equal

A decrease in the price of a good will lead to:

An increase in quantity demanded

Price gouging occurs when:

Prices on essential items rise to an unreasonable level

Suppose there is a shortage of raw materials used to produce a certain good. How will this affect supply of that good?

Supply will decrease (shift left)

When there is less supply than demand

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Unit 2 Review - Markets, Demand & Supply | 2023-24

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Questions 22

Answers

1
What is a surplus?
When supply and demand are equal
When there is never enough
When there is less supply than demand
When there is more supply than demand
2
What are non-price determinants?
Factors that can affect the quantity of a good or service produced
Factors that can affect the price of a good or service
Factors that can affect supply and demand, other than price
Movement along the curve
3
Suppose there is a new technological advancement making production more efficient. How will this affect supply of goods?
Supply will increase (shift rightward)
Supply will decrease (shift leftward)
Supply will depend on the price of the goods
Supply will remain the same
4
What is a non-price determinant of both demand and supply?
The availability of inputs
A change in future expectations
The price of the product
The price of complementary goods
5
Which of the following is a non-price determinant of supply?
Consumer income
Government regulations
Technology
Market price
6
Which of the following is a characteristic of a free enterprise U.S. capitalism?
Government ownership of resources
Centralized decision making
Private ownership of resources
Complete government control of the economy
7
Which of the following is NOT a primary economic goal of the U.S. Free Enterprise Capitalism?
Growth
Equity
Freedom
Efficiency
8
Which of the following is NOT a characteristic of a market economy?
Voluntary exchange
Private property rights
Competition
Centralized decision making
9
Suppose there is a sudden increase in consumer income. How will this affect the demand for INFERIOR goods?
Demand will depend on the price of the goods
Demand will increase
Demand will remain the same
Demand will decrease
10
When the price of a good is fixed by the government at a level below the equilibrium price, a:
Neither a shortage nor a surplus will occur
Shortage will occur
Surplus will occur
Demand will decrease
11
What is a non-price determinant of demand?
The income of consumers
The price of the product
The price of gasoline
The price of elasticity
12
When the market price is above the equilibrium price, there is a:
Equilibrium
None of the above
Surplus
Shortage
13
What is the equilibrium price?
The price at which only the consumer benefits
The price at which supply and demand are equal
The price at which everything is everything
The price at which only the producer benefits
14
A decrease in the price of a good will lead to:
An increase in quantity supplied
A decrease in demand
An increase in quantity demanded
A decrease in supply
15
Suppose there is a sudden increase in consumer income. How will this affect the demand for LUXURY goods?
Demand will increase
Demand will depend on the price of the goods
Demand will remain the same
Demand will decrease
16
What is a non-price determinant of supply?
The price of the product
The cost of production
The price of complementary goods
The price of substitute goods
17
Price controls that set a maximum price are known as:
Price floors
Subsidies
Tariffs
Price ceilings
18
The law of demand states that as the price of a good or service increases:
Quantity supplied decreases
Quantity demanded increases
Quantity supplied increases
Quantity demanded decreases
19
Price gouging occurs when:
The market is in equilibrium
Prices are set below the equilibrium price
Prices on essential items rise to an unreasonable level
Prices are set at the equilibrium price
20
Suppose there is a shortage of raw materials used to produce a certain good. How will this affect supply of that good?
Supply will increase (shift right)
Supply will remain the same
Supply will decrease (shift left)
Supply will depend on the price of the goods
21
What is a shortage?
When there is less supply than demand
When there is always enough
When there is more supply than demand
When supply and demand are equal
22
Which of the following is NOT a non-price determinant of demand?
Tastes and preferences
Prices of related goods (substitutes and/or complements)
Production costs
Consumer income

Unit 2 Review - Markets, Demand & Supply | 2023-24 Flashcards | StudBud