Which of these represents the Law of Demand?

price ↑, QD ↓; price ↓, QD ↑

Minimum wage, which is a price floor, can create which of the following:

surplus of workers (higher unemployment)

Peanut butter goes on sale; what happens to demand for jelly

demand increases (related goods)

What does this curve describe?

The relationship between price and quantity demanded

Which scenario matches this graph?

Demand for daycare increases because families move to Katy

Which scenario matches this graph?

Cooking with olive oil causes high blood pressure

What kind of goods might be given price ceilings (price can go no higher than set level)?

necessities (milk, rent, water, gas)

If the price of Vans increases what effect will it have on the demand for Converse?

Demand will increase/shift right (substitute goods)

Which of the following scenarios would match this graph?

A new government rule requires safety lights on all bicycles

Diamonds are a product with inelastic supply because...

they are limited in number and difficult to produce

Under the law of supply, what happens when the price of milk increases from $2/gal to $5/gal?

Producers will offer more milk at the higher price

New technology allows Samsung to produce phones in half the time. What will happen to supply?

Supply of phones will increase/shift right (new technology)

The price of shoes has increased. What effect will this have on demand for shoes?

none; a change in price only changes the quantity demanded

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Eco Unit 2: Supply, Demand, Equilibrium (ET)

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Questions 24

Answers

1
On a demand schedule, ceteris paribus assumes which factor is the only one to consider?
producer expectations
demand
price
environment
2
If a change in price does NOT have a significant effect on quantity demanded, the demand is...
elastic
inelastic
solid
accelerated
3
Which of these represents the Law of Demand?
price ↑, QD ↑; price ↓, QD ↓
price ↑, QD ↓; price ↓, QD ↑
price ↓, EQ↑; price ↓, EQ ↓
price ↑, QS ↑; price ↓, QS ↓
4
Minimum wage, which is a price floor, can create which of the following:
equilibrium
surplus of workers (higher unemployment)
surplus of jobs
shortage of workers (lower unemployment)
5
Peanut butter goes on sale; what happens to demand for jelly
demand increases (related goods)
supply increases (environment)
supply decreases (other sellers)
demand decreases (number of consumers)
6
What do we call the point where supply and demand intersect?
quantity supplied
ceteris paribus
quantity demanded
equilibrium
7
As a determinant of supply, new technology always...
decreases demand
increases demand
increases supply
decreases supply
8
What does this curve describe?
The production possibilities curve
The relationship between price and quantity supplied
The relationship between price and quantity demanded
A shift in demand for a product
9
Which scenario matches this graph?
Demand for sandals decreases because winter is coming
Robot technology means shoes can be made twices as fast
HEB offers a 50 percent off sale on M&Ms
Demand for daycare increases because families move to Katy
10
Buyer expectations, related products, annual income, number of consumers, and consumer desires
Determinants of Production
Determinants of Demand
Determinants of Equilibrium
Determinants of Supply
11
Which scenario matches this graph?
Eating carrots clears up teenagers' acne
A hurricane wipes out the spinach crop
Cooking with olive oil causes high blood pressure
Minimum wage increases for farm workers
12
What is the equilibrium price and quantity on this graph?
$100, 20 units
$60, 30 units
$20, 80 units
$50, 50 units
13
What kind of goods might be given price ceilings (price can go no higher than set level)?
cheap goods (toys, fast food)
necessities (milk, rent, water, gas)
luxuries (diamonds, platinum, sports cars)
mass market goods (books, TVs, computers)
14
If the price of Vans increases what effect will it have on the demand for Converse?
Demand will increase/shift right (substitute goods)
Supply of Converse will decrease/shift left (replacements)
Demand for Converse will not change
Demand will decrease/shift left (complementary goods)
15
Which of the following scenarios would match this graph?
A government ban on pesticide use by apple growers is lifted
A new government rule requires safety lights on all bicycles
A government study says pears are the healthiest fruit
The government offers subsidies to dairy farmers
16
Diamonds are a product with inelastic supply because...
they are easy to find and popular
they can be produced rapidly
they are limited in number and difficult to produce
they are available in abundant quantities
17
A price above equilibrium results in...
a shortage
an unobtainable point
a price ceiling
a surplus
18
Under the law of supply, what happens when the price of milk increases from $2/gal to $5/gal?
Producers will offer more milk at the higher price
Consumers will purchase more milk at the higher price
Producers will offer less milk at the higher price
The supply curve will trend downward
19
New technology allows Samsung to produce phones in half the time. What will happen to supply?
Supply of phones will increase/shift right (new technology)
Demand for phones will increase (other goods)
Equilibrium for phones will be unobtainable
Supply of phones will decrease/shift left (regulations)
20
The price of shoes has increased. What effect will this have on demand for shoes?
none; a change in price only changes the quantity demanded
demand will increase and shift to the right
demand will not change, but supply will decrease
demand will decrease and shift to the left
21
The quantity a producer is able and willing to produce at current price levels is called...
supply
market average
equilibrium
demand
22
If the government set a maximum price of $20 per unit, they would be creating a...
price floor
new equilibrium price
price ceiling
surplus
23
What price are consumers willing to pay for 20 units of this product?
$50
$100
$80
$20
24
The combination of desire, ability, and willingness to buy a product.
equilibrium
supply
demand
circle flow

Eco Unit 2: Supply, Demand, Equilibrium (ET) Flashcards | StudBud