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Chapter 4 - Market forces Supply and Demand Flashcards | StudBud
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Chapter 4 - Market forces Supply and Demand
Chapter 4 - Market forces Supply and Demand
8 terms
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StudBud Administration
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Questions
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Answers
1
A decrease (
leftward shift
) in the
supply
for a good will tend to cause
an increase in the equilibrium price and quantity
an decrease in the eq'm price and an increase in the eq'm quantity
an increase in the eq'm price and a decrease in the eq'm quantity
a decrease in the equilibrium price and quantity.
2
If consumers expect the price of shoes to
rise
, there will be an
increase
in the demand for shoes
today.
True
False
3
If there is a
shortage
of a good, then the price of that good tends to
fall
.
True
False
4
If the price of a good is
above
the equilibrium price,
there is a surplus and the price will rise
there is a shortage and the price will fall.
there is a shortage and the price will rise.
there is a surplus and the price will fall.
5
A perfectly competitive market has
only one seller.
firms that set their own prices.
at least a few sellers.
many buyers and sellers.
6
An
inferior
good is one for which an increase in income causes a(n)
decrease in demand.
increase in demand.
decrease in supply.
increase in supply.
7
The market supply curve is the horizontal
summation
of the
individual
supply curves
False
True
8
If apples and oranges are
substitutes
, an
increase
in the price of apples will
decrease
the demand for oranges.
False
True
