In a market economy, equilibrium is determined

through the interaction of buyers and sellers.

When demand decreases, what will happen to the equilibrium price and quantity?

Price decreases; quantity decreases.

When supply decreases, what will happen to the equilibrium price and quantity?

Price increases; quantity decreases.

which of the following is not part of the economic flowchart

consumers washing and ironing their own clothes

A market is said to be in equilibrium when

the quantity demanded equals the quantity supplied.

When demand increases, what will happen to the equilibrium price and quantity?

Price increases; quantity increases.

When demand increases, it means that

the demand curve will shift right

Which of the following events would cause demand to decrease in a market?

Australia is experiencing higher emigration

Opportunity cost refers to the key terms

the value of the 2nd option given up when purchasing or producing a good

supply decreasing and higher equilibrium price

When supply increases, what will happen to the equilibrium price and quantity?

Price decreases; quantity increases.

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HSU 2022: Demand & Supply Application

28 termsStudBud Administration164 plays

Demand & Supply Application

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Questions 28

Answers

1
This graph shows...
supply increasing
demand increasing
supply decreasing
demand decreasing
2
Which of the following events would cause supply to increase?
Costs of production increase.
A firm’s technology becomes outdated
A drought that impacts natural resources
More sellers enter the market.
3
This graph shows
price and quantity
all of the above
demand and supply curve
the equilibrium point
4
The green line in graph shows
a surplus in the market
Qty Demanded > Qty Supplied
a deficit in the market
the equilibrium point
5
In a market economy, equilibrium is determined
by the sellers.
by the buyers.
when the government sets a stable price.
through the interaction of buyers and sellers.
6
How many supply factors are there?
5
4
7
6
7
This graph shows
demand decreasing
supply increasing
demand increasing
supply decreasing
8
When demand decreases, what will happen to the equilibrium price and quantity?
Price decreases; quantity
Price decreases; quantity decreases.
Price increases; quantity decreases.
Price increases; quantity increases.
9
When supply decreases, what will happen to the equilibrium price and quantity?
Price increases; quantity decreases.
Price increases; quantity increases.
Price decreases; quantity decreases
Price decreases; quantity increases.
10
Which of the following events would cause demand to increase?
Consumers have more money.
Price of a complementary good increases.
Product goes out of style.
Price of a substitute good decreases.
11
If INCOME tax falls, this will cause demand to
rise
won't affect demand
fall
12
If prices increase from the equilibrium point up to $20, what occurs?
Qty Demanded < Qty Supplied
Qty Demanded = Qty Supplied
Qty Demanded > Qty Supplied
Equilibrium stays the same
13
When the price is above the equilibrium
this causes a surplus
this causes a deficit
there is no change to the equilibrium
14
This graph shows...
demand increasing
supply decreasing
supply increasing
demand decreasing
15
How many demand factors are there?
7
10
8
5
16
which of the following is not part of the economic flowchart
consumers paying for goods
consumers washing and ironing their own clothes
governments taxing consumers GST
producers providing wages to consumers
17
A market is said to be in equilibrium when
both demand and supply have stopped changing.
there are an equal number of buyers and sellers.
no new firms are entering the industry.
the quantity demanded equals the quantity supplied.
18
When demand increases, what will happen to the equilibrium price and quantity?
Price increases; quantity increases.
Price decreases; quantity decreases.
Price increases; quantity decreases.
Price decreases; quantity increases.
19
When demand increases, it means that
the demand curve will shift right
the supply curve will shift to the right
the entire demand curve has increased in value.
the demand curve will shift to the left
20
Which of the following events would cause demand to decrease in a market?
the economy & employment opportunities to improve
Product is a gaining popularity
Australia is experiencing higher emigration
Suppliers enter the market.
21
What is the original equilibrium price?
$15
$10
$25
$20
22
At $20, what is the quantity supplied?
13
16
15
12
23
Opportunity cost refers to the key terms
When both 1st and 2nd options are equal
the value of the 2nd option given up when purchasing or producing a good
The 3rd option chosen
the value of the 1st option given up when purchasing or producing a good
24
An advertisment will likely impact demand through which factor?
population
cost of production
disposable income
preference and taste
25
This graph shows
supply decreasing and higher equilibrium price
demand decreasing and a higher equilibrium price
supply increasing and lower equilibrium
supply decreasing and lower equilibrium price
26
When supply increases, what will happen to the equilibrium price and quantity?
Price increases; quantity decreases.
Price decreases; quantity decreases.
Price decreases; quantity increases.
Price increases; quantity increases.
27
What is the equilibrium quantity demanded and supplied?
quantity of 7
quantity of 4
quantity of 6
quantity of 9
28
Which of the following is NOT an economic player?
animals
producer
consumer
financial institutions

HSU 2022: Demand & Supply Application Flashcards | StudBud