Chisum Econ - Unit 2 Review

Assume a consumer buys fewer widgets when the price of doodads increases. Based on this, widgets and doodads are:

The point where quantity supplied and quantity demanded are equal is known as:

A maximum price set of rent for apartments would be an example of a:

If both supply and demand shift to the right, what will happen to price and quantity?

A vertical demand curve represents which of the following?

If consumers consider peanut butter a luxury and chocolate a necessity, which of the following is true?

Calculate total economic welfare if consumer surplus is $10, producer surplus is $5, and deadweight loss is $3

If quantity demanded increases by 20% when price falls by 50%, the good is:

Which of the following will happen to Good X if the price of Good Y (a substitute good) increases?

If a consumer buys less spam when their income increases, what kind of good is spam?

According to the Law of Supply, price and quantity supplied are inversely related.

If a market is experiences a surplus of quantity, which of the following would return this market to equilibrium?

If the price of a good increases, which of the following will occur?

True or False: A price ceiling set below equilibrium will create deadweight loss.

An effective price floor would most likely lead to which of the following?

If the number of buyers increases in a market, which of the followings shifts will occur?

Which of the following shifts would increase the market price and decrease the equilibrium quantity?

Calculate the elasticity of widgets if a 30% increase in price decreases quantity by 20%

Which of the following would most likely cause a demand curve to shift to the left?

True or False: A price floor set below equilibrium will create deadweight loss.

If consumer's expect the price of yachts to rise in the future, present demand for yachts will increase.

What term fits the following definition: "benefit received when a buyer pays a lower price than they are willing to pay"