Module 2 Review

Question 1

A situation in which quantity demanded or quantity supplied changes little with price(medicine)

Accepted Answer

Inelastic Demand

Question 2

The ability and willingness to purchase a good or service

Accepted Answer

Demand

Question 3

A market situation where prices are set in such a way that supply and demand are equal

Accepted Answer

Equilibrium

Question 4

The willingness and ability of a producer to produce and sell a product

Accepted Answer

Supply

Question 5

When the price of a product goes down, what happens to producers/suppliers?

Accepted Answer

Some produce less, while others leave that market

Question 6

Many substitutes causes demand to be

Accepted Answer

elastic

Question 7

Author of The Wealth of Nations and considered the father of capitalism (Invisible hand)

Accepted Answer

Adam Smith

Question 8

Situation in which supply is greater than demand,usually the result of prices being set toohigh

Accepted Answer

Surplus

Question 9

Situation in which demand is greater than supply,usually the result of prices being set too low

Accepted Answer

Shortage

Question 10

How does new technology generally impact production?

Accepted Answer

lowers cost & increases supply

Question 11

Price ceilings and price floors help the government control the market.

Accepted Answer

True

Question 12

How would an increase in population shift the demand curve?

Accepted Answer

it would move right

Question 13

An established maximum price that sellers may charge for a product

Accepted Answer

Price Ceiling

Question 14

An established minimum price that buyers must pay for a product

Accepted Answer

Price Floor

Question 15

If computer prices rise, Apple and Microsoft would

Accepted Answer

increase production

Questions 15