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Supply and Demand Quiz
Supply and Demand Quiz
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Review for Supply and Demand Test
Flashcards
31 cards
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Questions
31
Answers
1
What event might cause this shift?
More firms (sellers) enter the market
New technology improves production
Consumers read an article praising the product
Weather damages food crops
2
What is it called in a market when buyers buy exactly the same amount as sellers want to sell. QD=QS
shortage
disequilibrium
surplus
equilibrium
3
A problem with rationing is fairness and ...
everything is inelastic
prices are neutral
High administrative (government) Cost
Lots of economic choices
4
The cost or availability of inputs (resources) shifts
Demand Curve
Supply Curve
Quantity Demanded Line
Quantity Supplied Line
5
If demand shifts to the left prices will __________ and quantities will _____________
go up, go up
go down, go down
go up, go down
go down, go up
6
The following products would be considered
Complements
not Substitutes?
hot dogs and hot dog buns
hamburgers and chicken sandwiches
french fries and tater tots
Pepsi and Coke
7
Which graph shows a change in demand for shoes because of a rise in people's income?
D
C
B
A
8
Example of the law of supply
A restaurant purchases a new oven
Perdue Chicken opens a new factory
A citrus farmer doubles his land
A pizzeria increases slices they make as sale price increases
9
This change in the market causes Equilibrium Prices to _________ and Quantities to _________
down, up
up, up
down, down
up, down
10
An increase in the sale price will cause what change?
An increase in Demand
A increase in supply
A decrease in quantity supplied
An increase in quantity supplied
11
To have Demand a consumer needs ability, willingness, and ___ to pay for the product?
Desire
Thanksgiving
Trade-Off
Competition
12
Advantages of pricing are that it has lots of economic choice and
there are high administrative costs
prices are neutral
13
A price that is HIGHER than equilibrium will cause a __________ in the market.
demand to be greater than supply
shortage
surplus
equilibrium
14
If the quantity demanded is 200 and the quantity supplied is 50 how much is the shortage?
50
200
250
150
15
Expectation of future
profits (not price)
shifts
Quantity Demanded
Supply ROTTEN
Demand TRIBE
Quantity Supplied
16
If I redo my house and want a TV in every room I don't want to pay full price for all of them. This is...
Law of Demand
Law of Diminishing Marginal Utility
Law of Supply
Voluntary Exchange
17
The maximum legal price you are allowed able to charge is called
price floor
equlibrium
price ceiling
shortage
18
An example of the the minimum legal price you are allowed to charge such as a price floor is..
minimum wage
shortages
cap and trade
rent control
19
When prices fall and consumers feel like they have more $ even though they don't it's called?
Compliment Effect
Income Effect
Rationing Effect
Inferior Goods
20
The relationship between price and demand is
Consumers will buy more if the price goes up
Suppliers don't ever respond to demanders
Directly related
Inversely (Opposite) related
21
If there is a surplus, Quantity Demanded is ____________ than quantity supplied
the same
it depends
higher
lower
22
If the government
decreases
its subsidies to corn farmers (suppliers) the cost of producing corn will ____ for them?
Increase
Stay the Same
Decrease
Be $0
23
Price of peanut butter decreases. What happens in the market for jelly?
Increase in Quantity Demand
Decrease in Quantity Demand
Increase in Demand
Decrease in Demand
24
If a good is a need even if the price changes a little or a lot then the demand is? You are still buying it!!
unit elastic
elastic
at equilibrium
inelastic
25
Based on the profit motive if the sale price of a good falls suppliers will produce?
Old Products
Less
The Same
More
26
Which of the following is
NOT
a determinant of Price Elasticity of Demand? S.I.L.T.
Availability of substitutes
Luxury Item
Resources
Income would be affected
27
If the price of tortillas decreases, which graph shows the change in the burrito market?
D
B
C
A
28
If the price of colored pencils decreases, which graph shows change in the market for markers?
C
A
D
B
29
Look at the Graph. If this is the Market for Green Beans what might cause this to happen.
New Technology helps grow more green beans
Patrick Mahomes does a commercial for green giant
People find out green beans cause cancer
A drought destroys much of the green bean crop
30
If the price of pepsi goes up, what will happen to the demand for coke?
who knows coke tastes horrible anyway
it will increase
it will decrease
it will stay the same
31
The amount of goods
"producers"
are willing to produce at a certain price is the definition of
Supply
Market
Product
Demand
