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Demand, supply & equilibrium Flashcards | StudBud

Explore/Demand, supply & equilibrium

Demand, supply & equilibrium

10 terms·StudBud Administration·126 plays

Market equilibrium #market #supply #demand #equilibrium

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Questions 10

Answers

1
A higher equilibrium price will influence suppliers to?
Contract quantity supplied
Expand quantity supplied
Reduce the price of inputs
Advertise more
2
The impact of the new equilibrium price is?
Higher prices, contraction in S
Higher prices, an expansion in D
Lower prices, a contraction in S
Lower prices, an expansion in S
3
Sellers leaving the market will result in?
Supply shift to the right
Demand shift to the left
Demand shift to the right
Supply shift to the left
4
An increase in the price of cars would cause demand for petrol shift to left and a contraction in the supply of petrol
True
False
5
Equilibrium is
Occurs rarely
the ‘pointof balance’ between demand and supply in themarket
The ‘pointof inbalance’ between D & S
Impossible to achieve
6
Subsidies have the opposite effect of a tax
True
False
7
Price ⇑ and Quantity Demanded ⇓ - This can be described as...
The Law of Demand
Increase in demand
Decrease in supply
The Law of Supply
8
What would cause the shift in this demand curve from D → D1?
Huge advertising campaign
Increase in the price of substitutes
Fall in income
Population increase
9
A factor that might have caused a change in demand is?
Number of buyers increase
Higher disposable income
Population growth
Lower prices of substitutes
10
The Japanese govt have granted Toyota a $1Bn subsidy for electric car research & development
The price of electric cars will increase
Supply curve will shift to the left
People will demand electric cars
Supply Curve will shift to the right