Amount sellers willing to sell of good/service at any price

What is a price floor?

lowest price allowed in a market for goods and services

The price where q demanded is equal to q supplied

What does the law of demand state?

As prices rise, demand will fall

What is price control?

Government laws reg. p & don't let market forces determine p

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Micromates Economics Quiz

12 termsStudBud Administration

An economics Quiz to help with the basics of supply and demand.

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Questions 12

Answers

1
What is supply?
The price of a good in relation to demand
Amount sellers willing to sell of good/service at any price
The amount supplied by a firm in re demand of a good/service
The number of firms which supply a good/service
2
How are prices determined?
Depend on supply and demand
Depend on income of people living in country
Depend on demand
Depend on supply
3
What is a price floor?
lowest price allowed in a market for goods and services
Average price allowed in a market for goods and services
Quantity allowed in a market for goods and services
highest price allowed in a market for goods and services
4
Which of the following is not a determinant of the price elasticity of demand?
Definition of the market
Necessities vs luxuries
Natural resources used
Time horizon
5
What is equilibrium?
The price where q demanded is greater than q supplied
The price where q demanded is less than q supplied
The price where q demanded is equal to q supplied
The price where 1 demanded is half of q supplied
6
In which direction does the supply curve go?
Downwards slope
Vertical
Horizontal
Upwards slope
7
What does the law of demand state?
As prices rise, demand will fall
Demand will fall only if prices are above market equilibrium
As prices fall, demand will fall
As supply increases, demand will fall
8
When the government sets a maximum price that a good/service can be sold at this is a..?
Price floor
Price curtain
Price ceiling
Price wall
9
Do price ceilings and floors change demand or supply?
Yes
No
Maybe
Sometimes
10
What is an example of a price floor?
Price limit on gasoline
Insurance premium
Minimum wage
Rents
11
What does NOT cause a shift in the demand curve?
Taste
The price of a substitute good
The price of a good
Income
12
What is price control?
Government laws reg. p & don't let market forces determine p
Prevents a price from falling below a certain level
When government laws don't regulate price at all
Prevents a price from rising above a certain level

Micromates Economics Quiz Flashcards | StudBud