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Supply & Demand MTC Flashcards | StudBud
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Supply & Demand MTC
Supply & Demand MTC
25 terms
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StudBud Administration
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15 plays
An economics Quiz to explain the basics of Supply and Demand
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
When the supply curve shifts outwards, what is the effect on equilibrium price and quantity?
Price decreases, quantity decreases
Price decreases, quantity increases
Price increases, quantity decreases
Price increases, quantity increases
2
When a market is in equilibrium
The market is cleared by the equilibrium price
Excess demand and excess supply are zero
All of the above
Quantity demanded equals quantity supplied
3
If input prices increase, all else equal
supply will decrease.
quantity Demanded will decrease.
supply will increase.
demand will decrease.
4
A supply curve is directly affected by
all of the above
technology
A change in the price of substitutes
Consumer preferences
5
Which of the following would decrease the supply of wheat?
An increase in the price of corn.
A decrease in the price of pesticides.
An increase in the demand for wheat.
none of the above
6
When price ceilings are imposed on a market they cause
Market stability.
Surpluses in the market.
Equilibrium in the market.
Shortages in the market.
7
Which of the following provides us with the information about how much money a person will pay for a car?
Demand curve.
Supply curve.
Level of education.
Religious affiliation.
8
A demand curve can shift because of changing
prices of related goods
tastes
incomes
all of the above
9
A floor price of $30 would cause…
a shortage of 150.
a surplus of 400.
a shortage of 400.
a surplus of 150.
10
Which of the following is something that supply and demand curves must do in order to clear the market?
Intersect.
Both have a slope of zero.
Have an infinite slope.
Lie parallel to each other.
11
Which of the following could remedy a shortage caused by a price ceiling?
Outward shift of the supply curve
Inward shift of the supply curve
Outward shift of demand and inward shift of supply
Outward shift of the demand curve
12
A ceiling price of $15 would cause…
a shortage of 800.
a surplus of 600.
a surplus of 800.
a shortage of 600.
13
Which of the following will cause a change in quantity supplied?
A change in the market price of the good.
Technological change.
A change in input prices.
A change in the number of firms in the market.
14
The equilibrium price clears the market; it is the price at which ________ _________
quantity demanded equals quantity supplied
Consumers are happiest
excess demand is greatest
Producers have the largest profits
15
An increase in consumer income will increase demand for a ____ but decrease demand for a ____
normal good, complementary good
normal good, inferior good
substitute good, inferior good
inferior good, normal good
16
Which of the following would lead to an INCREASE in the demand for golf balls?
none of the above
A decrease in the cost of producing golf balls.
An decrease in the price of golf balls.
An increase in household income, they're a normal good
17
If the price of a complement increases, all else equal,
quantity demanded will increase.
demand will increase.
demand will decrease.
quantity supplied will increase.
18
If good A and good B are perfect complements, which combination is the most preferable?
Quantity A equals Quantity B
Quantity A is twice Quantity B
Quantity A more than Quantity B
Quantity A less than Quantity B
19
Which of the following would cause the price to fall quickly, while quantity increases?
Supply and Demand curves shift to the right.
Supply and Demand both increase rapidly.
Demand decreases at the same rate that Supply increases.
Supply increases and Demand is constant.
20
When we know the quantity of a product that buyers wish to purchase, we know?
Supply
excess supply
excess demand
Demand
21
In a competitive market, which of the following is true?
There are only a few sellers but many buyers.
There are many buyers and sellers.
There are only a few buyers but many sellers.
The government sets quotas on production to restrict supply.
22
An increase in price will cause a supply curve to shift to the left
True
False
23
______________ is the quantity of a good sellers wish to sell at any given price in a market.
Equilibrium
Supply
Surplus
Demand
24
If a price increase of good A increases the quantity demanded of good B, then good B is a
bargain
inferior good
complementary good
substitute good
25
________ and ________ do not directly affect the demand curve
the price of related goods, preferences
consumer incomes, tastes
the price of related goods, consumer incomes
the costs of production, bank opening hours
