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Economics Honors | Topic 3 -- Supply & Demand Flashcards | StudBud
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Economics Honors | Topic 3 -- Supply & Demand
Economics Honors | Topic 3 -- Supply & Demand
30 terms
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#Supply #Demand
Flashcards
30 cards
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Questions
30
Answers
1
If the price of a Snickers increases from $2 to $5 a bar, how will the demand curve for Snickers be affected?
Shift to Left, or decrease
Shift to Right, or increase
No shift.
2
How do you calculate a firm's total costs?
Sales + variable costs
Fixed costs - variable costs
Fixed costs + variable costs
Revenue - fixed costs
3
In what direction does the supply curve have to shift to show a decrease in supply?
No shift
None of the above
Right
Left
4
What does a supply curve represent?
It represents a demand schedule
It represents the amount suppliers purchase their goods for
It represents the quantity demanded
It represents the quantity supplied
5
A firm's profits will be maximized when marginal revenue
equals marginal cost.
is one-half marginal cost.
is double marginal cost.
exceeds marginal cost.
6
What direction does the demand curve need to shift to show a decrease in quantity demanded?
left
along the curve
right
upward
7
An individual gets 5 utils from 1 slice of pizza and 9 utils from 2 slices. Diminishing marginal utility implies
total utility from 3 slices will be less than 13 utils
total utility from 3 slices will be less than nine utils
total utility from 3 slices will be more than 14 utils
total utility from 3 slices will be exactly 12 utils
8
When the quantity supplied is more than the quantity demanded
Marginal cost
Shortage
Excess Demand
Surplus
9
Goods you would buy less of if your income were to increase are known as
Inferior Goods
Normal Goods
Basic goods
Superior Goods
10
Which of the following is considered a factor that will shift a supply or demand curve in the market for U.S. cars?
Technology makes assembly lines more efficient.
U.S. population increases
Consumer expectations of future price changes
Price of U.S. cars increases
11
Which of the following are fixed costs for a firm?
a manager's salary
property taxes
rent
electricity
12
A buyer knows the price of iPhones will increase in 2 months and they decide to buy now.
This is an example of consumer expectations
This is an example of income effect
This is an example of consumer tastes
This is an example of populations size
13
Which of the following is an example of a price floor?
Subsidies for farmers to NOT grow corn
Property taxes
Rent control
Park admission
14
As the price of a good increases, will firms supply more of less of that good?
Less
The same
More
15
The desire to own something and the ability to pay for it is known as
Demand
Supply
Ownership
Ability
16
Which of the following are examples of
substitute goods
?
Peanut butter and jelly
Coffee and Tea
Pumpkin pie and pre-made pie crust
Namebrand oreos and generic sandwich cookies
17
If the price of black ink increases, what will happen to the supply of black pens?
Supply will decrease due to the increase in the input good
none of the above
Supply will increase due to the increase in the input good
Supply will stay the same
18
Age, race, gender, and occupation within economics are all examples of
Firm costs
Demographics
Non-price determinants
Demand
19
What is the marginal utility of the 3rd slice of bread?
40
70
20
130
20
Which of the following can affect a
supply curve
?
Consumer expectations of future price changes
Input Costs
Technology
Number of supplies in the market
21
How does the equilibrium benefit both buyers and sellers?
Firms can sell more goods at higher prices
Buyers and sellers both get less than they hope for
Buyers can purchase more goods at cheaper prices
Buyers have enough goods and firms have enough buyers
22
The amount of money a company receives by selling its goods is known as
Total Expenditures
Total Money in
Total Income Received
Total Revenue
23
Why is the measure of elasticity important in economics?
The government can track a firms spending pattern
Firms and buyers can monitor each others movements
Buyers can measure how firms will change prices
Firms can measure how consumers will respond to price change
24
Despite a price change, the consumer will buy the same or even more
Elastic
Unitary Elastic
Shortage
Inelastic
25
The price of cotton (input good) has decreased, what will happen to the supply of t-shirts?
The supply will decrease due to the lower cost of cotton
The supply will increase due to the lower cost of cotton
The quantity supplied of shirts will decrease
The supply will stay the same
26
What does it mean to be at the disequilibrium?
Quantity supplied is equal to quantity demanded
Firms aren't operating at efficiency
Firms are operating at efficiency
Quantity supplied is not equal to quantity demanded
27
If the price of Halloween candy decreases will buyers demand more candy or less candy?
More due to the price decrease
Buyers will demand the same
Less due to the price decrease
none of the above
28
A goods price is higher so we buy less, if the goods price is lower we buy more.
Law of the Buyer
Law of Demand
Law of the Supplier
Law of Supply
29
The amount of a good or service that is available is known as
Excise Tax
Supply
Total revenue
Demand
30
Which of the following is an example of a complimentary good?
Strawberries and deodorant
Ibuprofen and christmas ornaments
Peanut butter and jelly
Gasoline and butterscotch
