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Demand and Supply Review Flashcards | StudBud
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Demand and Supply Review
Demand and Supply Review
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Questions on graphing the #demandcurve and #supplycurve #economics
Flashcards
37 cards
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Questions
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Answers
1
Demand for a neutral good will _____ when income increases.
stay the same
decrease
increase
no idea
2
A tangible thing that gives satisfaction or enjoyment.
Good
Service
Auction
Supply
3
Which graph shows the effect on demand due to a decrease in # of buyers?
Graph A
Graph D
Graph C
Graph B
4
The Law of Demand states that the relationship between price and quantity demanded is
elastic
diminishing
Inverse
Direct
5
Which graph shows a decrease in QUANTITY demanded?
Graoh C
Graph B
Graph A
Graph D
6
If there is a large change in price, but quantity demanded doesn't change much demand is...
Inelastic
Elastic
Normal
Neutral
7
Which graph shows the effect on demand due to an increase in the # of buyers?
Graph C
Graph B
Graph A
Graph D
8
Taxes are raised. Which supply curve shows what will happen to the supply of the product.
C
D
A
B
9
To have demand you must have these two things.
willingness and quantity
willingness and ability
price and quantity
market and money
10
If the price of a COMPLEMENTARY good rises, what will happen to the Demand for the first good?
goes DOWN
goes UP
stays the same
can't be determined
11
What do LOW prices signal to Suppliers?
to supply more
to supply less
to buy less
to buy more
12
If quantity changes a lot due to a small change in price, demand is...
Elastic
Inelastic
13
Identify the formula for elasticity of demand.
change in price / change in demand
change in quantity demanded / change in price
%change in quantity demanded / %change in price
%change in price / %change in quantity demanded
14
Peanut Butter and Jelly are examples of :
Substitute goods
Complementary goods
Veblen goods
Inferior Goods
15
What do price floors usually create?
more jobs
surplus
shortage
increased transactions
16
Law of supply states as the _______ increases the quantity supplied increases.
Price
number of buyers
Supply
Demand
17
High prices signal buyers to buy _______
Buyers don't notice prices
Less
more
the same amount
18
How are prices determined in market economy?
quantity and supply
the Government sets prices
willingness and ability
supply and demand
19
The Law of Diminishing Marginal Utility explains
Why suppliers produce more at higher prices
Why suppliers produce less at lower prices
Why buyers pay less for additional quantities
Why buyers buy less at lower prices
20
What do price ceilings usually cause?
equilibrium
shortage
surplus
more transactions
21
Which Graph shows an increase in QUANTITY Demanded?
Graph C
Graph B
Graph A
Graph D
22
A change in this will NOT cause a shift in supply or demand. . .
the price of the good
Income
Number of Sellers
Resource Prices
23
An increase in QUANTITY demanded means a change in:
Price only
# Buyers
Consumer Tastes
Buyers Income
24
A place where all transactions are made is called a _________________.
internet
telephone
market
store
25
To show a decrease in demand you would:
move along the curve
can't tell
shift right
shift left
26
If the price of a SUBSTITUTE for a good goes UP, what happens the demand for the first good?
goes down
goes up
stays the same
can't be determined
27
At Equilibrium, which is true?
Qs = Qd
Ep = Eq
Qs < Qd
Qs > Qd
28
How do you show a change in price only?
move along the curve
shift right
can't tell
shift left
29
Which graph shows the change in demand for a normal good due to a decrease in buyer's Income?
Graph D
Graph C
Graph B
Graph A
30
If your good is ELASTIC for demand and you raise prices, what happens to TOTAL REVENUE?
What is TR?
TR goes up
TR stays the same
TR goes down
31
Dr. Thunder is an example of a:
Inferior good
Neutral good
Normal good
Superior good
32
The relationship between price and quantity in the law of supply is
Inverse
Direct
Ascending
Inelastic
33
Which of the following is NOT a factor that causes demand to shift?
price of related goods
preference
income
price
34
What do high prices signal to SUPPLIERS?
to make and sell less
to buy more
to buy less
to make and sell more
35
Government wants more solar power. It gives subsidies. Which supply curve shows result?
D
B
A
C
36
To show an increase in demand you would:
can't tell
move along the curve
shift right
shift left
37
Which is true when there is a surplus?
Qs < Qd
Qs = Qd
Ep = Eq
Qs > Qd
