If the price of toothpaste increased, what would happen to the elasticity of toothpaste

inelastic b/c it's a low cost necessity

What would happen to the demand for peanuts if an insect destroyed half the peanut crop?

increase price, lower demand for peanuts

Government regulation of a factory with more pollution checks would affect supply by

decrease supply w/ higher production cost

are the basis of the U.S. economy

How does a severe drought affect the market for rice?

decreases supply and raises price

Which of the following is generally true after a shift in supply or demand?

market moves to a new equilibrium

How are price ceilings and price floors similar

both show disequilibrium (market is NOT at equilibrium)

studbud

Demand & Supply

15 termsStudBud Administration432 plays

Demand & Supply Review #supplyanddemand

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
If the price of toothpaste increased, what would happen to the elasticity of toothpaste
inelastic b/c it's a large portion of a budget
Inelastic b/c it's a luxury
inelastic b/c it's a low cost necessity
elastic b/c there are no substitutes
2
What would happen to the demand for peanuts if an insect destroyed half the peanut crop?
market equilibrium, stable prices for all goods
law of demand, lower prices for all goods
supply shock, higher consumption of peanuts
increase price, lower demand for peanuts
3
Government regulation of a factory with more pollution checks would affect supply by
decrease supply w/ higher transportation cost
increased supply w/ more efficeincy
decrease supply w/ higher production cost
increased supply w/ subsidy cost
4
Supply and Demand
are the basis of the U.S. economy
mainly determine a country's economic system
All of these
are key aspects of the Cuban economy
5
How does a severe drought affect the market for rice?
decrease supply by encouraging farmers to grow another crop
increase supply by increasing demand for rice
decreases supply and raises price
decrease supply by increasing farmers' production costs
6
Which of the following would be considered a complement to salsa in the context of demand?
tortilla chips
bolts
peanuts
screw drivers
7
Which of these would happen due to a successful ad campaign for iPhone 8?
supply curve shifts left
demand curve shifts right
demand curve shifts left
supply curve shifts right
8
For most products and services, increased prices results in
demand for fewer products
increased demand for complements
reduced demand for substitutes
demand for more products
9
Prices
give us information about the market
act as signals to both buyers and sellers
force us to carefully manage scarce resources
All of these
10
Which of the following is generally true after a shift in supply or demand?
demand falls as prices rise
supply rises with demnand
market moves to a new equilibrium
equilibrium moves down
11
What would likely happen to oranges as a result of a severe freeze?
supply curve would shift right
consumers would demand more fruit
supply curve would shift left
more sellers enter the market
12
Competition between _____________ forces prices UP
buyers
buyers and sellers
sellers and buyers
sellers
13
How are price ceilings and price floors similar
both show input changes in demand
both involve a maximum price
both show disequilibrium (market is NOT at equilibrium)
both are government price supports
14
Product: Cheerios Headline: General Mills to Open New Packaging Plant
increase demand for Cheerios
decrease supply of Cheerios
decrease demand for Cheerios
increase supply for Cheerios
15
An increase in the price of flashlights results in a decrease in the demand for batteries. They
are substitutes
are complements
are demand elastic
are inelstic

Demand & Supply Flashcards | StudBud