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Supply & Demand Flashcards | StudBud
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Supply & Demand
Supply & Demand
20 terms
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StudBud Administration
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Review of supply and demand concepts
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Which of the following is NOT a factor that would shift supply
future price expectations
# of sellers
income
taxes
2
The two factors of supply are:
price & quantity
supply & demand
quantity supplied & demand
demand & price
3
Again... what is a factor that would NOT shift supply?
input (resource) prices
supply side shocks
price
subsidies
4
In the market for a good, if demand shifts left (decreases) and supply stays the same...
EP goes up & EQ goes up
EP goes down & EQ goes up
EP goes up & EQ goes down
EP goes down & EQ goes down
5
If the price of shoes goes down, what can we expect to happen in the market for socks?
The demand curve for socks will shift left
The demand curve for socks will shift right
The supply curve for socks will shift right
The supply curve for socks will shift left
6
If TR > TC then...
there has been a profit
the good has a substitute
the good is elastic
there has been a decrease in price
7
Which of the following will result in a change in quantity demanded?
A change in Taste
A change in Price
A change in taxes
A change in the number of buyers
8
If the demand for jeeps increases when consumers' incomes increase, then...
Jeeps are normal goods
Jeeps are substitute goods
Jeeps are inferior goods
Jeeps are complementary goods
9
Total Revenue =
price - quantity
price x quantity
supply - demand
supply x demand
10
Who determines the quantity demanded at every price point?
The buyers in the market
Kenny Norman
The sellers in the market
The government
11
In the market for a good, if the supply decreases (shifts left) and demand stays the same...
EP goes up & EQ goes up
EP goes down & EQ goes up
EP goes up & EQ goes down
EP goes down & EQ goes down
12
In the market for a good, if the demand increases and the supply stays the same...
equilibrium price goes down and equilibrium quantity goes up
equilibrium price goes up and equilibrium quantity goes up
equilibrium price goes up and equilibrium quantity goes down
equilibrium price goes down and equilibrium quantity gs down
13
The law of demand states that...
Prices and demand move in opposite directions
Prices and quantity demanded move in opposite directions
Prices and demand move in the same direction
Prices and quantity demanded move in the same direction
14
What would shift quantity supplied?
income
input (resources) prices
price
# of sellers
15
In the market for a good if the supply increases (shifts right) and the demand stays the same:
EP goes up & EQ goes down
EP goes up & EQ goes up
EP goes down & EQ goes up
EP goes down & EQ goes down
16
When a price is lower than equilibrium...
there is a surplus
the price is too high
there are too many of the good
there is a shortage
17
Which of the following is most likely to have inelastic demand?
A good with many close substitutes
Any good in the long-run
A good that is a necessity
A good that is considered a luxury
18
When price is higher than equilibrium...
There is a shortage in the market
The price will increase
The good is elastic
There is a surplus in the market
19
Which of the following would have the most inelastic supply curve?
fisheries
picasso paintings
new houses
oil
20
A price floor is...
A legal minimum price of a good
When prices are held too low
A legal maximum of a good
A limit on how many goods can be sold
