A shift in the demand curve means which of the following?

A change in demand at every price

Which of the following is the best example of the Law of Supply?

Sandwich shop increases the # supplied when prices increase

If a business owner becomes aware of a shortage in the market they are likely to

Increase supply more and raise the price

How is future price related to current demand?

If the price is expected to rise, current demand will rise

Which of the following describes a way that the minimum wage and rent control are similar?

Both involve gov't intervention in the marketplace

On which kinds of goods do governments generally place price ceilings

Those that are essential but too expensive for some consumer

The price of movie tickets goes from 7 to 9. What is the most likely effect of the change in P

The quantity demanded of movie tickets will decrease

Which of the following events could cause the demand curve for sports magazines to shift right?

BBplayer interests 1000s in professional sports for 1st time

Under what conditions might a baker have to throw out many muffins at the end of the day?

A surplus, when QD is lower than QS

What happens to demand for storm-related supplies when a major storm is being forecasted?

A shift in the demand curve to the right

Which of these events would indicate a movement along a supply curve for batteries?

Raise the price of AA batteries from 3.50 to 3.95 a set

What is a basic principle of the Law of Demand

When a good's price is lower, people will buy more of it

What happens to a market in equilibrium when there is an increase in supply?

Qty supplied will exceed qty demanded, price will drop

Substitution effect; friends will respond to a price raise of their favorite post-game snack by

Choosing another snack instead of their favorite snack

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Midterm: Supply and Demand

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Topic 3: Supply and Demand

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Questions 26

Answers

1
When a consumer is able and willing to buy a good/service, he/she creates?
Elasticity
Demand
Allocation
Consumption
2
In which direction does the supply curve shift when input costs increase?
Right
Down
Up
Left
3
John responds to price increase for transportation by buying fewer clothes, he is demonstrating
An individual demand schedule
The Substitution Effect
The Income Effect
Horizontal Demand
4
A shift in the demand curve means which of the following?
A change in consumer income
A change in demand at every price
A decrease in both price and quantity demanded
A rise in prices
5
Which of the following is the best example of the Law of Supply?
Sandwich shop increases the # supplied when prices increase
A catering company buys a new dishwasher to make work easier
Milling company builds a new factory to process flour
Food producer increases the # of acres of wheat he grows
6
How many equilibrium points can exist at the same time on a combined supply and demand graph?
Two
An infinite number
Three
One
7
When buyers will purchase exactly as much as sellers are willing to sell
Equilibrium
Supply and Demand
Excess Demand
Price Floor
8
Of the following whose price goes down because of improvements in technology?
Running Shoes
Hamburgers
Hard-bound books
Cell Phones
9
Rent control is a type of
Price Ceiling
Price Floor
Rationing
Surplus
10
If a business owner becomes aware of a shortage in the market they are likely to
Increase supply more and raise the price
Increase supply and lower the price
Reduce supply and lower the price
Reduce supply and raise the price
11
How is future price related to current demand?
Future price is not related to current demand
If the price is expected to fall, current demand will rise
If the price is expected to rise, current demand will rise
If the price is expected to rise, current demand will drop
12
What kind of chart lists the quantity of a good that a person will buy at different prices
Market Demand Schedule
Market Demand Curve
Demand Schedule
Demand Curve
13
Which of the following describes a way that the minimum wage and rent control are similar?
Both are price ceilings
Both involve the profit incentive at work in the marketplace
Both involve gov't intervention in the marketplace
Both are price floors
14
On which kinds of goods do governments generally place price ceilings
Those that are essential but too expensive for some consumer
Those that are cheap but could become more expensive w/o
Those that are not necessary but have become customary
Those that are essential and cheap
15
Name of the smallest amount that can legally be paid to most workers for an hour of work
Equilibrium Price
Price Floor
Supply Cost
Minimum Wage
16
The price of movie tickets goes from 7 to 9. What is the most likely effect of the change in P
The demand curve for movie tickets will move left
The quantity demanded of movie tickets will increase
The quantity demanded of movie tickets will decrease
The demand curve for movie tickets will move right
17
Which of the following events could cause the demand curve for sports magazines to shift right?
Local library buys a subscription to sports mag for reading
BBplayer interests 1000s in professional sports for 1st time
Price of an issue of a popular computer game mag 2.95 - 3.95
The publisher cuts the price from 3.95 to 2.50
18
What shows the quantities of products demanded at each price by all consumers in a market?
A schedule of consumer prices
A market demand schedule
A market pricing list
An elasticity and consumption list
19
Under what conditions might a baker have to throw out many muffins at the end of the day?
A surplus, when QD is lower than QS
A surplus, when QS is lower than QD
A shortage when QD is lower than QS
A shortage, when QS is lower than QD
20
What happens to demand for storm-related supplies when a major storm is being forecasted?
A change downward along the original demand curve
A change upward along the original demand curve
A shift in the demand curve to the right
A shift in the demand curve to the left
21
Which of these events would indicate a movement along a supply curve for batteries?
Must spend more $ on environmentally sound trash disposal
New trade agremnt enables stores to import foreign batteries
Workers at the factory go on strike and stop production
Raise the price of AA batteries from 3.50 to 3.95 a set
22
Which of the following goods would likely be bought in the same qty even if it doubled in price
Computers
Diamond earrings
Telephones
Pencils
23
What is a basic principle of the Law of Demand
Services are of interest in the same way that goods are
Everyone has a limited income that they will spend
The higher the price, the more people will want the good
When a good's price is lower, people will buy more of it
24
What happens to a market in equilibrium when there is an increase in supply?
Qty demanded will exceed qty supplied, price will drop
Undersupply means that the good will become very expensive
Excess supply means producers will make less of the good
Qty supplied will exceed qty demanded, price will drop
25
Substitution effect; friends will respond to a price raise of their favorite post-game snack by
Working extra hours to make more money
Buying less of their favorite snack
Choosing another snack instead of their favorite snack
Buying more of their favorite snack
26
What factor causes firms to increase production when the price of a good or service goes up
Desire for profits
Need to unload inventory
Increase in demand
Reduction in costs

Midterm: Supply and Demand Flashcards | StudBud