Toilet paper is an example of an inelastice good. Why?

The quantity demanded will not change much when the price changes.

When more suppliers enter a market for a product, what happens to the price they will receive for their goods?

. The price will go down, because there is an increased supply.

In order to demand something you must:

desire it and be able to pay for it at the price asked.

What is a price ceiling?

Maximum price that can be legally charged for a g/s.

Equilibrium price is:

the price at which quantity supplied and quantity demanded are equal.

What is market disequilibrium?

When the quantity supplied and the quantity demanded are not the same.

The two parts of the law of supply are:

When the price goes down, supply will go down., When price goes up supply will go up.

Why is the price system efficient?

It does not cost anything., Good signal to businesses to make more or less., Prices are easy to change.

What is a shift in the demand curve?

A change in demand at every price.

What is a shift in the supply curve?

A change in supply at every price.

When the price of a good goes up, what happens to the quantity of a good businesses are willing to supply?

Businesses will be willing to supply more.

Why would the government give subsidies?

To help an industry compete with foreign competition., To help an essential industry, so they don't go out of business.

What does elasticity measure?

How much demand will change when the price changes.

A gov. payment to a business to make or not make something.

What is a price floor?

A minimum price that can be chaged for a g/s.

What does market equilibrium create?

No excess demand or excess supply.

What impact do most government regulations have on the price and supply of g/s?

Prices go up and supply goes down.

The two parts of the law of demand are:

When the price goes down people will buy more of a good., When the price goes up people will buy less of a good.

Why is supply inelastice over a short period of time?

Businesses have a hard time changing the quantity of g/s they make.

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Supply and Demand

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Questions 31

Answers

1
Supply refers to the behavior of which group?
Government
Consumers
Workers
Businesses
2
Toilet paper is an example of an inelastice good. Why?
When demand goes down the price stays the same.
Consumers buy less of a good because the price is too high.
The quantity demanded will not change much when the price changes.
When the price goes down people will buy a lot more.
3
When more suppliers enter a market for a product, what happens to the price they will receive for their goods?
. The price will go down, because there is an increased supply.
The price will stay the same, because there is a decreased supply.
The price will go up, because nobody wants the goods.
The price will increase, because there is a complimentary good to purchase.
4
Pictured below is a:
Demand Curve
Normal Curve
Supply Curve
Substitute Curve
5
In order to demand something you must:
desire it and be able to pay for it at the price asked.
have the money.
desire it but not want to pay the asking price.
want it and have some money.
6
What is a price ceiling?
The lowest price that can be demanded from a consumer.
Maximum price that can be legally charged for a g/s.
The equillibrium price for a g/s.
The highest price a consumer will pay for a g/s.
7
Which of the following might create a shift in the supply curve?
An increase in the value of money.
A drought.
A change in people's style.
A worker's strike.
8
A good example of a good with inelastic supply is:
toilet paper
water bottles
oranges
tacos
9
Demand refers to the behavior of:
the government.
sellers and producers.
buyers and customers.
businesses and employees.
10
What two variables does a supply curve compare?
Costs
Profit
Quantity
Price
11
Pictured below is a:
Equillibrium Curve
Supply Curve
Wage Curve
Demand Curve
12
Equilibrium price is:
the price at which quantity supplied and quantity demanded are equal.
quantity demanded is equal to the price.
the price and quantity demanded by the government.
the lowest price for the highest quantity charged.
13
What is market disequilibrium?
When resources are efficiently produced.
Elastic goods increase in price.
When the quantity supplied and the quantity demanded are not the same.
Businesses must drop their prices to sell all of their goods.
14
The two parts of the law of supply are:
Supply will go up, when demand goes down.
When the price goes down, supply will go down.
When the price goes down, supply will go up.
When price goes up supply will go up.
15
When a business makes to much of a g/s, it leads to:
a surplus.
a decrease in demand.
a shortage.
prices going down.
16
Why is the price system efficient?
It does not cost anything.
Good signal to businesses to make more or less.
Prices are easy to change.
The gov. controls prvices.
17
What is a shift in the demand curve?
The good’s price is inelastic.
Consumers buy less of a good because the price is too high.
The price of a good goes up.
A change in demand at every price.
18
How much of a normal good will a person buy when their income goes up?
None
More
The same amount
Less
19
What is a shift in the supply curve?
A change in supply at every price.
A change in price decreases demand.
The good’s price is inelastic.
The relative importance of the product to the consumer.
20
Rent control is a good example of a:
surplus.
price ceiling.
price floor.
subsidy.
21
Minimum wage is a good example of a:
Price floor.
Externality
a bad idea.
Increased supply
22
When the price of a good goes up, what happens to the quantity of a good businesses are willing to supply?
The cost to make things goes down.
Businesses will be willing to supply more.
Producers are willing to sell less.
There is no relationship between the two.
23
Why would the government give subsidies?
To help an industry compete with foreign competition.
To help an essential industry, so they don't go out of business.
Comsumers want lower prices for some things.
The businesses will go bankrupt if the gov does not help them.
24
What does elasticity measure?
The relative importance of the product to the consumer.
Whether the product is a luxury or a necessity.
How much toilet paper people will buy when the price goes down.
How much demand will change when the price changes.
25
What is a subsidy?
A price minimum for a g/s.
Taxes the gov. charges businesses.
When there is not enough of something to go around.
A gov. payment to a business to make or not make something.
26
What is a price floor?
A minimum price that can be chaged for a g/s.
A price that is too high for businesses to sell their g/s.
Price where no businesses will produce the g/s.
A maximum price that the government can charge for a g/s.
27
What does market equilibrium create?
No excess demand or excess supply.
Scarce goods and services.
A surplus of goods.
High prices for inelastic goods.
28
Supply refers to the behavior of:
sellers and producers.
buyers and customers.
the government.
businesses and employees.
29
What impact do most government regulations have on the price and supply of g/s?
Prices will go up and supply will go up.
Prices will go down and supply will go up.
Price will go up but it harder to get g/s.
Prices go up and supply goes down.
30
The two parts of the law of demand are:
When the price goes down people will buy less of a good.
When the price goes up people will buy more of a good.
When the price goes down people will buy more of a good.
When the price goes up people will buy less of a good.
31
Why is supply inelastice over a short period of time?
Consumers will create shortages.
Consumers change their desire for products.
Producers have a hard time getting factors of production.
Businesses have a hard time changing the quantity of g/s they make.

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