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Supply and Demand Flashcards | StudBud
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Supply and Demand
Supply and Demand
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StudBud Administration
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Economics - supply and demand (also elasticity)
Flashcards
14 cards
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Questions
14
Answers
1
If there is a decrease in demand, there will be a
Movement along the demand curve from right to left
Movement along the demand curve from left to right
Shift to the right of the original demand curve
Shift to the left of the original demand curve
2
If E>1, a good can be said to be
Unit elastic
Price inelastic
Price elastic
3
What does a movement from D to D1 show?
An extension of demand
An increase in supply
An increase in demand
An decrease in price
4
What is not a factor influencing shifts in the demand curve?
Consumer preferences
Changes in income
Cost of factors of production
Changes in prices of substitues
5
If the demand for coffee decreases as income decreases, coffee is:
a normal good
an inferior good
a complementary good
a substitute good
6
What is the elasticity of demand from $4 to $5?
Inelastic
Elastic
Unit elastic
7
What is the movement from A to C in terms of demand called?
An extension in demand
A decrease in demand
An increase in demand
A contraction in demand
8
The law of demand states that the quantity demanded varies...
Positively with the price of the good
With the prices of other goods
With the price of the good
Negatively with the price of the good
9
What is a cause of a contraction in demand?
An increase in supply
A decrease in price
An increase in price
A decrease in supply
10
The quantity demanded of Pepsi has decreased. The best explanation for this is that:
the price of Coca Cola has increased.
Pepsi consumers had an increase in income.
the price of Pepsi increased.
Pepsi's advertising is not as effective as in the past.
11
Which of the following is not a factor affecting shifts in the supply curve?
Number of firms in industry
Changes in prices of the factors of production
Changes in technology
Consumer preferences
12
Which of the following is perfectly inelastic?
B)
A)
13
Suppose the demand for good Z goes up when the price of good Y goes down. These goods are...
complements
substitutes
unrelated goods
14
A factor causing an extension in supply could be
A fall in the price of other goods and services
A rise in labour productivity
A rise in price
A reduction in prodution costs
