stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Unit 2 Review-Supply and Demand Flashcards | StudBud
Explore
/
Unit 2 Review-Supply and Demand
Unit 2 Review-Supply and Demand
18 terms
·
StudBud Administration
·
77 plays
Imported from external platform
Flashcards
18 cards
F
Practice quiz
P
Host live
L
Questions
18
Answers
1
What is an example of an inelastic good?
gas
tacos
books
jet engines
2
What is equilibrium?
Qs=P
Qs=Qd
Qd=P
Qs does not equal Qd
3
Price
decrease
does what to quantity demanded? (Law of Demand)
lowers it
raises it
keeps it the same
4
Price
increase
does what to quantity demanded? (Law of Demand)
lowers it
keeps it the same
raises it
5
What is supply in economics?
the quantity of a good wanted
amount of a good available
the amount of a good the consumer wants
6
What is the Substitution Effect?
when a teacher is gone, they call a sub
/when the price of one item goes up, another one goes up
when prices rise, people will find a cheaper alternative
When one item is easier to buy, due to income
7
What is the difference between scarcity and shortage?
you can find one in economics and not the other
scarcity is temporary, shortage is permanant
shortage is temporary and scarcity is permanant
There is no difference
8
The change shown in the graph below is a:
change in supply
change in quantity
change in quantity demanded
change in quantity supplied
9
When the quantity demanded relatively changes dramatically, and price changes a little is
substitution
elastic demand
income effect
inelastic demand
10
When quantity demanded is lower than quantity supplied this is called a
equilibrium
surplus
shortage
scarcity
11
Price
decrease
does what to quantity supplied? (Law of Supply)
increases it
decreases it
keeps it the same
12
The change in the graph below is a:
change in quantity demanded
change in supply
change in quantity supplied
change in demand
13
Increase in the price of milk causes a decrease in the demand for cereal. The two products are
elastic
complements
unrelated
substitues
14
What is Income Effect?
how income will change Qd of a good or service
When income determines the price of a good
when income changes the quantity supplied
When you have more money to spend
15
If a price increase has little or no effect on the Qd for a product, demand for that product is
an equilibrium
a shortage
elastic
inelastic
16
Price
increase
does what to quantity supplied? (Law of Supply)
decreases it
increases it
keeps it the same
17
What are inelastic goods?
Price goes up, relative demand changes little
When relative price changes quantity demanded
When relative demand changes a lot
18
What is demand in economics?
desire to own something
a request
desire to own with the ability to pay
willingness to pay
