How is future price related to current demand?

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

Why do fads often lead to shortages, at least in the short term?

Buyers and sellers cannot agree on a price for the good

Which of the following is a situation that makes the market behave inefficiently?

when consumers don't have enough information to make choices

What is a basic principle of the law of demand?

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

What does it mean when the demand for a product is inelastic?

A price increase does not have an impact on buying

What are inferior goods?

goods for which the demand falls when income rises

When the selling price of a good goes up, what is the relationship to the quantity supplied?

It becomes practical to produce more goods

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Supply and Demand

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Questions 18

Answers

1
How is future price related to current demand?
Future price is not related to current demand.
If the price is expected to rise, current demand will drop
If the price is expected to fall, current demand will rise.
If the price is expected to rise, current demand will rise.
2
When a consumer is able and willing to buy a good or service ______ is created.
demand
consumption
allocation
elasticity
3
Why do fads often lead to shortages, at least in the short term?
time is needed for quantity supplied and price to increas
Manufacturers charge extremely high price
Buyers and sellers cannot agree on a price for the good
Laws prevent stores from responding to excess deman
4
Which of the following is a good that might not be bought when prices rise?
inferior good
substitute
complement
luxury
5
Which of the following is a situation that makes the market behave inefficiently?
when producers have the power to find out what to produce
when the market is in competition and prices are high
when consumers and producers are informed about a product
when consumers don't have enough information to make choices
6
What is a basic principle of the law of demand?
When a good’s price is lower, people will buy more of it
Services are of interest in the same way that goods are.
. Everyone has a limited income that they will spe
The higher the price, the more people will want the good
7
Which of the following is a good whose price goes down because of improvements in technology?
computer printers
. running shoes
hard-bound books
typewriters
8
What does it mean when the demand for a product is inelastic?
There are very few satisfactory substitutes for the product.
People will not buy any product when the price goes up
Customers are sensitive to the price of the product
A price increase does not have an impact on buying
9
Rent control is a type of
surplus
rationing
price ceiling
price floor
10
What is the smallest amount that can legally be paid to most workers for an hour of work?
equilibrium
price floor
supply cost
minimum wage
11
What are inferior goods?
goods for which the demand falls when income rises
goods for which the demand rises when income rises
goods that are not well produced
goods that no one wants to buy
12
When buyers will purchase exactly as much as sellers are willing to sell,what has been reached?
supply and demand
equilibrium
public floor
excess demand
13
Which of these is an example of a good with elastic supply?
plumbs
passenger airplanes
large hand-made rugs
sandwiches
14
Which of the following is a fixed cost for a store?
inventory
short term workers
advertising
rent
15
When the selling price of a good goes up, what is the relationship to the quantity supplied?
The cost of production goes down
It becomes practical to produce more goods
The profit made on each item goes down
There is no relationship between the two.
16
What kind of table lists the quantity of a good that a person will buy at different prices?
demand curve
demand schedule
market demand curve
market demand schedule
17
What factor has the greatest influence on elasticity and inelasticity of supply?
financing
time
rent
labor
18
The price ceiling that was used to control the price of housing in New York City is?
housing control
equilibrium price
rent control
rent abandonment

Supply and Demand Flashcards | StudBud