Unit 2 - Supply and Demand review

Question 1

The place where there is an equal number of sellers and buyers for a particular product

Accepted Answer

Equilibrium

Question 2

Substitutes: If the price of peanut butter rises, what will happen to demand for peanut butter

Accepted Answer

Quantity Decrease

Question 3

When there is an unexpected loss in income - what type of goods will consumers buy less of?

Accepted Answer

Normal Goods

Question 4

Which market structure is easiest to enter and exit?

Accepted Answer

Perfect Competition

Question 5

If we increase the number of sellers, what will likely happen to Equilibrium Price?

Accepted Answer

Decrease

Question 6

Which of the following is NOT true of a market

Accepted Answer

Each individual matters in a market

Question 7

A study shows pizza can cure cancer, The change in EQ price and quantity for pizza will be?

Accepted Answer

P: Increase, Q: Increase

Question 8

Which of these is not a market structure

Accepted Answer

Oligopolistic Competition

Question 9

A yacht is an example of a ____ good, as income goes up, demand goes ___

Accepted Answer

Normal, Up

Question 10

Which of the following is NOT a way to determine elasticity

Accepted Answer

Has the government taxed the item?

Question 11

The minimum wage is an example of a

Accepted Answer

Price Floor

Question 12

Which market structure has the highest barriers to entry?

Accepted Answer

Monopoly

Question 13

The introduction of ________ creates a surplus.

Accepted Answer

Price Floor

Question 14

What is demand elasticity?

Accepted Answer

Degree to which demand for a product is affected by price.

Question 15

Increase in Price = Increase in ______ according to the Law of Supply

Accepted Answer

Quantity Supplied

Question 16

Under which of the following controls is the demand greater than the supply?

Accepted Answer

Price Ceiling

Question 17

Which market structure has the fewest number of sellers?

Accepted Answer

monopoly

Question 18

A government control intended to limit how low a price can go.

Accepted Answer

Price Floor

Question 19

What is the elasticity of this curve?

Accepted Answer

Perfectly Inelastic

Question 20

If the price of gas is going to increase, what will happen to the demand for gas?

Accepted Answer

Demand will Increase

Question 21

If another seller of sub sandwiches comes to town, what can we expect will happen to the price?

Accepted Answer

Decrease

Questions 21