Which will create demand for peanut butter?

news that insects have destroyed the peanut crop

If the price of a product falls, producers are likely to

slow production to create scarcity so demand goes up

A higher price for a product

causes buyers to buy less of it

Demand is best defined as the measure of how much consumers are willing & able to buy

at different possible prices in a given period of time

If bad weather destroys much of the wheat crop, then

growers will offer less wheat at each and every price

If the price of water increases

the demand for water-saving shower heads will shift right

If the profit opportunity for a product increases......

there will be an increase in the number of producers

Demand will normally change when there is a change in any one of the following except

the elasticity of product supply

Producers usually sell more at higher prices than at lower prices because

marginal costs usually rise as they increase production

Market clearing price is important because

it balances the amounts demanded and supplied

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Demand and Supply

20 termsStudBud Administration758 plays

Ch3and4

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Questions 20

Answers

1
Which will create demand for peanut butter?
an increase in jelly price
fewer children in the population
a health report that peanut butter is not healthy
news that insects have destroyed the peanut crop
2
Demand for insulin tends to be inelastic because the drug is
a substitute
a necessity
a luxury item
a natural resource
3
If the price of a product falls, producers are likely to
increase production to lower marginal costs
increase production to make up for lost profits
continue production at current levels
slow production to create scarcity so demand goes up
4
Inverse relationship between the price of a product and the quantity that consumers will buy
theory of marginal costs
the law of demand
principle of fair pricing
shift in demand
5
The demand of a product is high. The price goes up 15%. Which is most likely to see an increase
natural resources
suppliers output
consumer demand
government intervention
6
A higher price for a product
causes shortages
shifts the both supply and demand curves
encourages sellers to sell less of it
causes buyers to buy less of it
7
Demand is best defined as the measure of how much consumers are willing & able to buy
at one price in a given period of time
at different possible prices in a given period of time
according to their income and budget over time.
from suppliers at the best price
8
If bad weather destroys much of the wheat crop, then
growers will offer less wheat at each and every price
both options
demand will cause less wheat to be sold at lower prices
none of the options
9
Which of these is the most likely effect of an increase in cost of production?
lower levels of production
production surpluses
longer production schedules
rising demand for workers
10
The lines in this image represent
Shortage
Market Clearing Price
Supply
Surplus
11
Demand for cars is elastic because they
are luxury products
few close substitutes
have long-term value
are large expenditure items
12
If the price of water increases
the demand for water will shift to left
the demand for water-saving shower heads will shift right
the demand for bath soap will shift right
demand for desert-type landscaping will shift to left
13
If the profit opportunity for a product increases......
there will be an increase in the number of producers
there will be an increase in production cost
there will be an increase in consumers
there will be an increase in demand
14
The amount of how much producers are willing and able to sell at different prices over time
Inelastic
Demand
Opportunity cost
Supply
15
Demand will normally change when there is a change in any one of the following except
the level of consumers' incomes
the availability of substitute goods
the price of complementary products
the elasticity of product supply
16
Demand for a product tends to be inelastic when the product has
more consumers than suppliers
fixed prices
high market value
few substitutes
17
Producers usually sell more at higher prices than at lower prices because
their marginal costs usually drop as production increases
marginal costs usually rise as they increase production
more is demanded
they don't have to worry about marginal costs
18
The lines in this graph represent
Rationing
Shortage
Market Clearing Price
Surplus
19
If the price of beef rises and remains high, then over time the supply of beef
becomes more elastic
becomes more inelastic
shifts to the left
remains unchanged
20
Market clearing price is important because
it shifts both the demand and supply curves
it causes buyers to disappear from the market
it clears away scarcity
it balances the amounts demanded and supplied

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