Supply and Demand

Question 1

In a market based economy, consumers rely on prices to help them_____.

Accepted Answer

choose among similar products

Question 2

An increase in the price of substitute goods would cause what type of change in demand?

Accepted Answer

Demand for other similar goods would increase

Question 3

Newspaper said freezing temps have hurt peach crops, what can we expect?

Accepted Answer

Market will be put into disequalibrium

Question 4

The law of Supply indicates that supply and price have what type of relationship?

Accepted Answer

Direct / Positive

Question 5

What type of affect would income have on the purchase of normal goods?

Accepted Answer

Income rises, purchase of normal goods increase

Question 6

A change in Quantity Supplied is ___________.

Accepted Answer

Change on the line

Question 7

What type of relationship does demand and price have?

Accepted Answer

Inverse / Negative

Question 8

All items will show signs of demand elasticity.

Accepted Answer

False

Question 9

A shift of a demand or supply curve to the right would indicate __________.

Accepted Answer

An increase of Supply or Demand

Question 10

All of the following are fixed cost except.

Accepted Answer

Utilities

Question 11

how might a firm deal with diminishing marginal returns of labor

Accepted Answer

Increasing its physical capital

Question 12

Negative returns happens at ________ and is dtermined by_______.

Accepted Answer

Stage III, both total and marginal output decrease

Question 13

Which of the following might be considered a compliment to a flashlight?

Accepted Answer

Batteries

Question 14

Almond Pest Destroys 50 Percent of Crop, Prices to Double what might happen?

Accepted Answer

income effect leading to lower demand of several goods

Question 15

Supply elasticity is based on which area of production?

Accepted Answer

Short Run

Questions 15