stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Econ IB - 20HL Unit 1 (Supply & Demand) Flashcards | StudBud
Explore
/
Econ IB - 20HL Unit 1 (Supply & Demand)
Econ IB - 20HL Unit 1 (Supply & Demand)
30 terms
·
StudBud Administration
·
102 plays
Questions created by Econ 20IB P2 and modified by Fitz.
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
If price remains the same & Q
d
decreases, the shifts in supply and demand are:
Supply left
Supply left, Demand left
Supply right, Demand left
Supply left, Demand right
2
How do you determine a producer surplus?
(lowest price sold) - (lowest price to produce)
(lowest price to produce) - (lowest price sold)
Qs - Qd
Qd - Qs
3
What
best
represents a competitive market?
Consumers compete for best products at the best price.
Sellers & buyers act collaboratively to ensure equilibrium price.
Sellers & buyers act independetly to ensure no seller price control.
Sellers have complete control over the price of the product they sell.
4
Which one of the following changes would affect
only
the Q
d
of toys?
Global economic recession causing decrease in consumer income
Factory workers go on strike to protest low wages
Increase in the price of plastics
Manufacturers agree to collectively raise toy prices by 25%
5
Gucci & Louis Vuitton are substitute goods. If the price increases for Gucci, what happens to the Q
d
for Louis Vuitton?
Price increase
Increase
Price decrease
Decrease
6
Given a price of $5 per carton of chocolate milk, Q
d
is 180 and Q
s
is 460. The market shows:
A surplus of 280 cartons
A shortage of 260 cartons
The milk has gone bad
An equilibrium shift
7
Which graph represent a consumer surplus?
Graph C
Graph B
Graph A
Graph D
8
Q
S
is 21 when Price is $1, and Q
s
is 37 when Price is $2, when Q
s
= c + dP, what is the value of c?
37
21
5
16
9
Respectively, Increased taxes, increased subsidies, and a flood will do what to supply curves of corn?
Shift the curve left, right, and left
All shift the supply curve left
All shift the supply curve right
Shift the curve right, left, and right
10
If consumer income increases and Q
d
for Good A decreases, what type of good is Good A?
Inferior
Interior
Normal
Normalized
11
The price for cream drops & it has just become summer, which way will the demand/supply for ice cream shift?
Supply increases (shift right)
Demand increases (shift right)
Both Supply and Demand shift right
Both Supply and Demand shift left
12
Beef price increases, however, cow farmers grow corn instead due to gov't CO
2
regulation. What happens to Q
d
for beef?
Qd increases
Demand shifts left lowering price
Qd decreases
Qs decreases
13
If demand shifts left & supply shifts right, the price will:
Decrease
Increase
Remain the same
Cause a surplus or shortage
14
Which of the following is not a non-price determinant of supply?
A) Competitive Supply
B) Related Goods
C) Both B and D
D) Substitute Goods
15
What is happening to the equilibrium price in the graph?
Equilibrium price is the same
Equilibrium price is increasing
Equilibrium price is indeterminant
Equilibrium price is decreasing
16
Which of the following would cause an increase in the quantity demanded, but a decrease in price?
Supply shift right
Demand shift left
Supply shift left
Demand shift right
17
Given a linear demand function Q
d
= 100-2P, what is the equilibrium Q
d
when equilibrium price is $30?
60 units
40 units
160 units
70 units
18
What relationship does the price of goods and the quantity demanded have?
Negative casual relationship
Price increases, demand decreases
Positive causal relationship
Negative causal relationship
19
More firms produce good A (supply shift right), what is happening to equilibrium quantity demanded?
Quantity demanded decreases
Quantity demanded increases
Demand shifts right
Demand shifts left
20
What does consumer surplus represent?
Difference between cost of production and consumer marginal benefit
Market equilibrium with excess consumers
Excess consumers in the market place
The marginal benefit between the price willing to be paid & price paid
21
Q
S
is 21 when Price is $1, and Q
s
is 37 when Price is $2, when Q
s
= c + dP, what is the value of d?
$2
21
37
16
22
Which graph represents a producer surplus?
Graph A
Graph C
Graph B
Graph D
23
With a shift left in supply, what other movement would be caused?
Qd decreases
Demand increases
Qs increases
Price decreases
24
A study shows Good A increases the risk of cancer. If Q
d
=a-bP for Good A, which demand function shows the shift?
Qd = (-2) -bP
Qd = a-bP + (-2)
Qd = (-2) (a-bP)
Qd = a + (-2)(bP)
25
As the price of air pods increase, suppliers will:
Increase the quantity of air pods supplied
Shift the supply curve to the right (increased supply)
Shift the demand curve to the left (decrease quantity demanded)
Be lost (along with the pods themselves) casusing a supply decrease.
26
A storm devastates farmers by destroying potato crops. Is there a potato demand or supply shift & which direction?
Demand shifts left
Demand shifts right
Supply shifts left
Supply shifts right
27
When is a
P
roduction
P
ossibilities
C
urve straight (~linear)?
The factors of production for Good A & B are similar
There are unlimited wants and limited resources showing opportunity cost
The non-price determinants of demand for Good A & B are similar
The factors of production are scarce which shifts the demand
28
A meteor hits Earth, panic ensues: What happens to demand for engineers that engineer escape capsules? Why?
Demand increase; taste and preference
Qd increase; price of related good or service
Demand increase; complementary goods or services
Demand increase; demographic change
29
When we move from point A to point B, what is the opportunity cost?
5 Bananas
15 Bananas
12 Bananas
12 Chickens
30
A drought affects 90% of the tomato supply, the supply curve for ketchup will:
shift left
cause a decrease in price.
shift right
cause an increase in demand.
