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Surdacki's Supply & Demand Review Flashcards | StudBud
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Surdacki's Supply & Demand Review
Surdacki's Supply & Demand Review
20 terms
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StudBud Administration
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416 plays
Economics review before a test
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
If consumers expect electric car prices to decrease very soon, what will happen today?
Demand will increases and price will rise
Supply will decrease and price will rise
Supply will increase and price will fall
Demand will decrease and price will fall
2
Chick-fil-A meals have elastic SUPPLY because
there are many substitutes
more can be produced quickly
3
Which is NOT a determinant ("shifter") of supply?
new government regulations
cost of inputs (raw materials, labor)
technology
price of substitutes and complements
4
If there's a nationwide flu epidemic, what will happen?
D for all goods will decrease/prices will fall
D for all goods will increase/prices will rise
S for all goods will decrease/less productivity
S for all goods will increase/more productivity
5
Which is NOT a determinant ("shifter") of demand?
population
income
number of sellers
taste or preference
6
Price FLOORS protect the _________ and Price CEILINGS protect the ___________.
consumer...producer
producer...consumer
7
What is the Law of Demand?
As the P of a good rises, the QD falls.
As the P of a good rises, the QD also rises.
8
American Apparel T-Shirts have elastic DEMAND for all of the following reasons except...
there are many subsitutes
they can be made quickly
it is not a necessity to have an AA t-shirt
they're kind of expensive
9
What does the Demand curve for insulin look like?
almost vertical
almost horizontal
10
If the government establishes a "minimum wage" above the equilibrium wage...
nothing; this won't affect the labor market.
the labor market will be in equilibrium.
there will be a shortage of workers willing to work
there will be a surplus of workers willing to work
11
If the price of jelly increases, what will happen in the market for peanut butter?
D will decrease
S will decrease
D will increase
S will increase
12
If the government sets a limit on the amount you can be charged for car insurance...
the insurance market will be in equilibrium.
surplus; too many firms will supply insurance
shortage; not enough firms will supply insurance
there will be no effect on the insurance market.
13
Is the Supply for satellites "Elastic" or "Inelastic"?
Inelastic; because they take a long time to bring to market
Elastic; because they take a long time to bring to market
14
If Coke lowers their prices, what will happen in the market for Pepsi?
Supply decrease and price will rise
Demand increase and price will rise
Supply increase and price will fall
Demand decrease and price will fall
15
If Supply of oil DECREASES, the Supply curve shifts ______ and the price ________.
right...falls
left...rises
right...rises
left...falls
16
What does the Demand curve for Dr. Pepper look like?
more horizontal
more vertical
17
If the government grants farmers a price for corn that is higher than the equilibrium price,
the market will be in equilibrium
nothing; the market for corn won't be affected.
there will be a shortage of corn
there will be a surplus of corn
18
If there's a fruit shortage, what will happen in the market for grape jelly?
demand will decrease
supply will decrease
supply will increase
demand will increase
19
What is the Law of Supply?
As the Price of a good rises, the QS also rises.
As the Price of a good rises, the QS falls.
20
If there's another baby boom, what will happen?
S for all goods will decrease; prices will rise
D for all goods will decrease; prices will fall
D for all goods will increase; prices will rise
S for all goods will increase; prices will fall
