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Unit II Part I - Supply, Demand, and Equilibrium Flashcards | StudBud
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Unit II Part I - Supply, Demand, and Equilibrium
Unit II Part I - Supply, Demand, and Equilibrium
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A 20 question formative assessment on supply and demand. #supplyanddemand #equilibrium #shifters
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Questions
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Answers
1
I am predicting that my test grade will be a(n)
I will be absent.
C or D.
A or B.
E.
2
Excess supply and demand must be handled outside the market by
a black market.
rationing.
setting an excise tax.
a subsidy.
3
If the price of tacos (substitute good) increases, the demand for pizza will ______.
decrease
increase
stay the same
supply will increase
4
What is
not
a determinant of demand?
change in weather
change in taste/preference
change in population
change in income
5
What are the names of the two flows of the Circular Flow Model?
subsonic flow and transonic flow
circular flow and oval flow
square flow and rectangular flow
money flow and physical things flow
6
The prediction of a hurricane hitting your town would cause the demand for batteries to
shift to the right.
shift to the left.
7
What is the only thing that can change quantity demanded?
change in consumers' income
change in price
change in price of substitute good
change in price of complementary good
8
The illustration is that of a
equilibrium
demand curve
supply curve
production possibilities curve
9
The quantity demanded for Nike shoes has increased. The best explanation is that:
supply has increased
price has decreased
price has increased
supply has decreased
10
A government excise tax tends to discourage or decrease supply of a good or service.
False
True
11
T/F: A price floor is when government sets a minimum price consumers must pay for g & s.
True
False
12
The amount of something that consumers will buy at a particular price is called ______.
supply
quantity supplied
demand
quantity demanded
13
Which of the following is NOT a demand curve shifter?
changes in income
tastes and preferences
changes in technology
substitute goods
14
Supply Chain: What process follows 'storage facilities'?
manufacturing plants
retailers
consumer
distribution centers
15
Which of the following would
most likely
increase the supply of notebook paper?
a decrease in the cost of inputs
an excise tax
a decrease in the price of pencils
an increase in cost of inputs
16
What happens at the point where the two curves meet?
increase in supply
quantity demanded = quantity supplied
equilibrium
increase in demand
17
2 of 10 tire producers decide to close down. This will cause the supply of tires to
shift to the left
shift to the right
18
The illustration is that of a
demand curve
production possibilities curve
equalibrium curve
supply curve
19
What would cause a movement along the supply curve?
a change in the number of sellers
a change in price
a change in technology
change in price expectations
20
T/F: The Circular Flow Model consists of two flows.
True
False
21
In the diagram, the equilibrium price and quantity is ____.
$4 and 40
$3 and 100
$2 and 90
$3 and 70
22
Which of the following would NOT be commonly found on the black market?
body parts
exotic animals
baby formula
pencils
23
A government subsidy can either increase OR decrease the supply of a product or service.
True
False
24
What shifter applies to the T-shirt scenario?
Change in technology.
Change in # of producers
Change in supplier expectations.
Change in cost of inputs.
25
T/F: Excess demand tends to drive up prices.
False
True
26
Demand is the ____ and ____ of consumers to purchase a good or service.
willingness, ability
willingness, intelligence
time, effort
intelligence, ability
27
The price of screenprinting ink has increased. How will supply of graphic t-shirts be affectd?
The supply curve will shift to the left.
Supply curve will shift to the right.
The demand curve will shift to the right.
The demand curve will shift to the left.
28
Which of the following is NOT a supply curve shifter?
producer expectations
number of producers
complimentary goods
costs of imputs
29
Peanut butter and jelly, mustard and ketchup, and shoes and socks are considered:
substitute goods
complementary goods
supplies
natural resources
30
_____ exists when the quantity demanded = the quantity supplied.
marginal analysis
demand
supply
equilibrium
31
If a new technology allowed us to produce computers cheaper, what would happen to supply?
It would decrease
It would stay the same
we don't know
It would increase
32
T/F: Equilibrium price is also known as market price.
False
True
33
Supply Chain: What process follows 'distribution centers'?
storage facilities
raw materials
manufacturing plants
retailers
34
At the price of $1, what is the quantity demanded?
110
90
100
80
35
As the price for apples goes from .40 to .60 per pound, the quantity supplied goes from:
2,000 to 3,000 lbs
1,000 to 2,000 lbs
3,000 lbs to 4,000 lbs
1,000 lbs to 3,000 lbs
36
Excess demand (or shortage) leads to
lower prices.
higher prices.
increased supply.
decreased supply.
37
Excess supply tends to
decrease prices.
increase prices.
38
According to the law of demand: as price goes down, ______ goes up.
quantity supplied
demand
supply
quantity demanded
39
Which of the following is an example of a price ceiling?
gasoline rationing
scalping concert tickets
rent control
minimum wage
40
What could have caused the shift in the demand curve?
a decrease in consumer income
an increase in consumer income
the price of a substitute good goes up
a decrease in population
41
What could have caused this supply curve to shift to the right?
cost of resources increased
less competitors in the market
cost of resources decreased
more competitors in the market
42
The relationship between price and quantity supplied is ____.
direct
positive
negative
inverse
43
The money going out of the Households and into Product Market is called
wages, rent, profit.
revenue.
income.
spending.
44
Which of the following is a participant in the Circular Flow Model?
Households
Factor Market
Firms
Product market
45
Price ceilings usually result in...?
a roof over your head
surpluses
higher prices
shortages
46
When the price for bubble soda drops from $80 to $60, the quantity demanded goes from ____.
40 to 80
20 to 40
40 to 60
60 to 80
