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Supply, Demand, & Price Review Flashcards | StudBud
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Supply, Demand, & Price Review
Supply, Demand, & Price Review
25 terms
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StudBud Administration
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A review of basic concepts in supply, demand, and price
Flashcards
25 cards
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Questions
25
Answers
1
The amount of a product that consumers will purchase at a certain price is...
Supply Schedule
Demand Schedule
Total Revenue
Shock Supply
2
__________ blank determines how a firm can change their quantity supplied
factors of production
labor
money
time
3
A sudden drop is supply is known as...
unitary elasticity
Law of supply
disequilibrium
shock supply
4
Demand of a good or service is inelastic if...
the demand does not change
the demand can increase or decrease
firms increase the price of the good or service
firms stop producing the good or service
5
Which is not an example of a normal good?
Store brand cereal
New jeans
2016 Camaro
iMac Laptop
6
The most evident example of a price floor in a free market economy...
production costs
minimum wage
excise taxes
subsidies
7
When prices are high, firms will...
supply more of the product to increase revenue
supply less of the product to encourage buyers
lower the prices to get rid of their inventory
stop producing the product
8
When supply of a product does not match the demand there is a
shortage
disequilibrium
surplus
equilibrium
9
Consumers are more inclined to buy normal goods when...
their income stays the same
their income decreases
their income increases
they are given a government excise tax
10
An example of a fixed cost would be...
wages paid to workers
food cost for a restaurant
rent paid for using a building
electricity bills
11
Marginal Product of Labor can decrease production if...
Worker's dont get along
Less workers specialize in their
There isnt enough capital for production
Wages for workers increase
12
Government will attempt to decrease supply or increase price through...
excise taxes
subsidies
regulating the market
laissez faire
13
If prices are raised on inelastic goods...
IDK
Total revenue will increase
Total revenue will decrease
Total revenue stays the same
14
Which is an example of a substitute for milk?
oil
orange juice
popcorn
cereal
15
supply<demand=
disequilibrium
equilibrium
shortage
surplus
16
When prices increase and income remains the same, consumers feel as though they have less.
Revenue effect
Elastic effect
Substitute effect
Income effect
17
Economists use demand curves to....
Who will buy a good or service
establish price ceilings
Demographics of that population
Determine how much of a good or service to supply
18
Firms will offer more of a product when prices increase, and less when prices decrease. This is
Law of Demand
Law of Price
Law of Supply
Law of Elasticity
19
supply>demand=
disequilibrium
shortage
surplus
equilibrium
20
Which is an example of a compliment of milk?
oil
orange juice
popcorn
cereal
21
Advancements in technology usually affect production by...
reducing physical capital
Lowering production cost
innovating production
Increasing production cost
22
Law of supply, law of demand, price floors, etc. do not affect...
a free market system
a command economy
a traditional economy
a black market
23
The change in production by adding an additional unit of labor is called...
Thinking on the Margin
Marginal Product of Cost
Margarine
Marginal Product of Labor
24
Quantity supplied is always elastic because...
Firms only supply what consumers demand
Consumers' demand will change
Prices can increase or decrease
scarcity
25
Factors that can change the quantity supplied are called...
Taxes
Subsidies
Variables
Fixed cost
