There is rise in price of a good, what will most likely happen to the quantity supplied?

The quantity supplied will increase because producers profit

The demand of a product is elastic if:

Consumers change demand due to price change

Market equilibrium refers to a situation in which market price is:

Where supply and demand intersect & the market will operate

What will most likely happen to the demand of a good or service if there was a fall in price?

Quantity demanded increases b/c consumers like low prices

There is a fall of price, what will most likely happen to the quantity supplied of the good?

It will decrease because producers cannot profit at low cost

What does it mean if a products demand is inelastic?

Demand will be insensitive to the changes in price or income

The demand of a product in respects to change will be inelastic if:

There are fewer substitutes for the product

studbud

Supply, Demand, Elasticity, and Equilibrium

11 termsStudBud Administration430 plays

A Quiz designed to explain the basics of supply, demand, equilibrium, and elasticity.

Flashcards11 cardsFPractice quizPHost liveL

Questions 11

Answers

1
There is rise in price of a good, what will most likely happen to the quantity supplied?
The quantity supplied will decrease because demand will fall
The market is unpredictable
The quantity supplied will increase because producers profit
2
The demand of a product is elastic if:
Consumers change demand due to price change
The market is changeable but it changes slowly due to demand
Consumers will not change their demand due to price change
The market remains unchanged
3
Which of the following items is inelastic?
Gas for your vehicle
Designer shoes
Candy bars
Soda
4
Market equilibrium refers to a situation in which market price is:
High enough to allow firms to earn profit
Low enough for consumers to buy all that they want
Where supply and demand intersect & the market will operate
Above the intersection of market supply and demand graphs
5
What will most likely happen to the demand of a good or service if there was a fall in price?
Quantity demanded decreases because low cost = low quality
This is unable to be predicted
Quantity demanded increases b/c consumers like low prices
6
Which one is viewed in the lenses on the consumer?
Theory of production
Game theory
Demand
Supply
7
There is a fall of price, what will most likely happen to the quantity supplied of the good?
It will decrease because producers cannot profit at low cost
It will increase because consumers will buy more at low cost
It is impossible to predict how the market will react
8
What does it mean if a products demand is inelastic?
Demand will be insensitive to the changes in price or income
The supply and demand will decrease once price changes
The demand will respond due to the change in price or income
The supply and demand will both increase when price changes
9
The demand of a product in respects to change will be inelastic if:
There are fewer substitutes for the product
It is not a necessity
It is a luxury good
Its price is high in relation to income
10
Which of the following terms describes a measure of responsiveness to a change in the market?
The law of demand
The law of supply
Market equilibrium
Elasticity
11
Which of the following is most viewed in the lenses of the producer?
Demand
All of the above
Opportunity cost
Supply

Supply, Demand, Elasticity, and Equilibrium Flashcards | StudBud