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Review of Demand, Supply, Equilibrium, FLOW Flashcards | StudBud
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Review of Demand, Supply, Equilibrium, FLOW
Review of Demand, Supply, Equilibrium, FLOW
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StudBud Administration
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Microeconomics review
Flashcards
29 cards
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Questions
29
Answers
1
What is the Market Clearing Price in the graph
$30
Not enough detail to know this
$80
$50
2
The law of supply states that
the lower the price the more consumers will buy
the higher the price the more consumers will buy
the lower the price the more producers will supply
the higher the price the more producers will supply
3
What happened to the Equilibrium or Market Clearing price in the following graph?
EQ price goes up; EQ quantity goes down
EQ price goes down; EQ quantity goes down
EQ price goes up; EQ quantity goes up
EQ price goes down; EQ quantity goes up.
4
You currently work at Chick-fil-a. You just received your paycheck for the week. The paycheck represents which sector?
6 thru 8
4 thru 2
5 thru 7
1 thru 3
5
What will cause of Change in overall Demand?
50% off entire store sale for today only!
A pair of Nike shoes going from $51 to $75.
Movies ticket prices being reduced by 25%.
Something other than a current retail price change.
6
Which of the following is NOT a Change in Demand determinant?
Costs of production
Popularity
Change in future prices
Change in Income
7
What is shown in the graph below?
A decrease in supply
An increase in supply
An decrease in quantity supplied
An increase in quantity supplied
8
What will be the result of this Government action?
There will be a shortage of Apartments
Not enough details given to know
There will be a surplus of Apartments
There will be equilibrium in the Market
9
How does a price increase of one product impact the purchase of a compliment good?
Compliment demand shifts right
Decrease in quantity demanded
Compliment demand shifts left
No impact to compliment good
10
What is happening in Grid 5 thru 7?
Goods and Services are being purchased
FOPS are being purchased
FOPS are being Provided
Goods and Services are being produced
11
Which sentence describes market conditions at equilibrium/market clearing price?
Qty Demand is greater than Qty supply
There is no supply or demand
Qty Supply is greater than Qty demand
Qty Supply and Qty demand are equal
12
In which Market are goods and services produced and purchased?
Business Market
Product Market
Household Market
Factor (Resource) Market
13
What will cause a Change in Quantity Supplied?
Gas prices are expected to go down this coming summer.
Costs to produce basketballs went down by 15% over last year
Retail prices of silly bands went from $2 to $5.
Due to the internet we now have 900 more places to buy ties
14
Moving from 6 dollars to 9 dollars would lead to a
Decrease in Price; Increase in quantity supplied
Increase in Price; Decrease in quantity supplied
Increase in Price; Decrease in quantity demanded
Decrease in Price; Increase in quantity demanded
15
What is this picture showing?
Supply Market graph
Demand Market graph
Change in Quantity Supply
Change in Quantity Demand
16
How does a retail price decrease of one product impact the purchase of a substitute product?
Substitute product has a decrease in quantity demanded
Substitute product demand shifts right
Substitute product demand shifts left
No impact to the substitute product
17
What could be the cause in the following graph?
The price of the product was increased.
The cost of production increased by 20%.
The price of the product was lowered.
The popularity of the product decreased.
18
What is happening in Grid 1 thru 3?
Goods and Services are being produced
Goods and Services are being purchased
FOPS are being Provided
FOPS are being purchased
19
What could be the cause of the following graph?
The retail price of the product decreased 0.40 cents.
Production costs were increased
Each household in the US received $500 in lower taxes.
Production costs were decreased.
20
What does the law of demand state?
When retail price goes up, demand goes up
When retail price goes down, demand goes down
When the retail price goes up, demand goes down
Law of demand is not based on prices
21
True or False. Businesses Purchase Factors of Production and Households Provide FOP's in the Factor (Resource) Market?
False
True
22
You work at Chick-fil-a. Someone comes in and buys a #1 Combo. The consumer in this scenerio represents which sector?
6 thru 8
4 thru 2
5 thru 7
1 thru 3
23
What has happened to the Market Clearing price and quantity in the following graph?
EQ price goes down; EQ quantity goes down.
EQ price goes down; EQ quantity goes up.
EQ price goes up; EQ quantity goes down.
EQ price goes up; EQ quantity goes up.
24
If the price of smart phones goes down, what will happen to the demand for smart phone cases?
It will not be affected
It will decline (Shift left)
The information can not be known from the available info
It will increase (Shift Right)
25
At Price P, what is this graph displaying?
Surplus due to an increase in overall demand and supply
Shortage due to a decrease in quantity demand and supply
Shortage due to a decrease in overall demand and supply
Surplus due to a decrease in qty demand and an increase in qty supply
26
What would cause the following shift shown in the graph?
Yogurt prices rise due to milk shortage
A new health report says that yogurt keeps you healthy
A new health report says yogurt makes you sick
Yogurt prices fall to all time lows
27
What is happening in Grid 8 thru 6?
Goods and Services are being produced
FOPS are being purchased
FOPS are being Produced
Goods and Services are being purchased
28
What is happening in Grid 4 thru 2?
Goods and Services are being purchased
FOPS are being purchased
FOPS are being Produced
Goods and Services are being produced
29
What could have caused this shift?
The manufacturer just lowered the retail price.
A compliment product raised it's retail prices.
You just received $1000 in cash from our government.
The manufacturer had higher production costs.
