stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Duplicate of AP Micro: Supply and Demand Flashcards | StudBud
Explore
/
Duplicate of AP Micro: Supply and Demand
Duplicate of AP Micro: Supply and Demand
25 terms
·
StudBud Administration
·
83 plays
#microeconomics #supplyanddemand
Flashcards
25 cards
F
Practice quiz
P
Host live
L
Questions
25
Answers
1
Why is the demand curve down sloping?
yellow and green options
increasing opportunity costs
diminishing marginal utility
the substitution effect
2
Which situation would cause the change shown in the graph?
an expectation of lower prices in the near future
lower population
higher consumer incomes
new production technology
3
Same graph: What would be the result of the price being set to $7?
a shortage of 2
a surplus of 4
a surplus of 1
a surplus of 2
4
What is the law of demand?
increased price brings lower quantity demanded
mo' money, mo' problems
increased price brings higher quantity demanded
decreased price brings lower quantity demanded
5
Deadweight loss refers to __________
the loss of consumer satisfaction ONLY due to gov't intervention
the collective weight of driftwood off a pontoon launch
the loss of business revenue ONLY due to gov't intervention
total benefit lost to missed trade opportunities due to gov't intervention
6
If the price of a substitute for good X rises, then the price of good X will _____
fall
difficult to determine
rise
7
An unintended consequence of a price floor is a ____________.
a government created surplus
a government created shortage
homelessness
a drop in GDP
8
Same graph: What would be the result of the market price being set at $4?
a shortage of 2
a surplus of 1
a surplus of 2
a surplus of 4
9
Which of the following is an inferior good?
Nike Shoes
spam (i.e. canned meat)
Oreo Cookies
Honda Cars
10
What might cause the situation shown in the graph?
a wave of new customers
a labor strike that slows production
the expectation of lower prices in the future
a technological breakthrough
11
What is the equilibrium price and quantity in this market?
P = $5 and Q = 5
P = $10 and Q = 9
P = $5 and Q = 10
P = $1 and Q = 9
12
An unintended consequence of a price ceiling is a __________.
a government created surplus
a government created shortage
a drop in trade
a rise in unemployment
13
Which price would make an effective price floor?
P2
P3
all of the above
P1
14
If the price of good X rises & the demand for good Y falls, then X & Y are ______.
rival goods in production
impossible to tell
complements
substitutes
15
Same graph: How much did the equilibrium quantity change?
it decreased to 3
it stayed the same
it decreased by 2
it increased by 2
16
If the government implements a quantity control, it would be to __________
attempt to improve the quality of the product/service
red & blue options
attempt to create a surplus of the product/service
attempt to improve the safety of the product/service
17
A quantity control will create...
a shortage
deadweight loss
none of the above
a surplus
18
Same Graph: What happened to the equilibrium price?
it decreased by $2
it decreased by $3
it increased by $2
it stayed the same
19
Income falls; the demand for good X rises. Good X is _____
normal
inferior
20
Which of the following is the best example of complements?
carrots & salsa
7-up & Coke
bagels & cream cheese
brats & soda
21
Supply decreases and demand increases and that's all we know, what happens?
P* down, Q* indeterminant
P* up, Q* up
P* up, Q* indeterminant
P* down, Q* down
22
If supply increases, and demand decreases and that's all we know, what will happen?
P* down, Q* indeterminant
P* up, Q* down
P* down, Q* up
P* down, Q* down
23
Same graph: Describe the change in equilibrium price.
it stays the same
it increased by 2
it decreases by 2
it increases by 3
24
The supply curve is upward sloping because ___________.
Total Revenue Effect
Law of Increasing opportunity costs
blue and green options
Substitution effect
25
Which of the following is NOT a determinant of Supply?
change in expectations of price
change in price of inputs/resources
change in technology
change in # consumers
