stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Dr. Toedt's Econ Unit 2 Review Flashcards | StudBud
Explore
/
Dr. Toedt's Econ Unit 2 Review
Dr. Toedt's Econ Unit 2 Review
60 terms
·
StudBud Administration
·
126 plays
Imported from external platform
Flashcards
60 cards
F
Practice quiz
P
Host live
L
Questions
60
Answers
1
An endorsement from a popular celebrity
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
2
A blight or drought kills off crops used to produce certain product
Demand increases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
3
A shift in the supply curve to the rights means:
the amount producers wish to sell at every price is the same
the amount producers wish to sell at every price decreases
the amount producers wish to sell at every price increases
All of the above
4
Changes in price shift the supply curve, no matter what they are
False
True
5
Price elasticity of demand measures...
buyers knowledge of the product
how sensitive consumers are to a change in price
buyers ability to switch
availability of substitutes
6
Price elasticity of supply is?
The responsiveness of supply to a change in price
The responsiveness of demand to a change in price
The number of rubber bands produced
How demand impacts price
7
Which is NOT an example of complementary goods?
Car and petrol
Boat and petrol
Bike and helmet
Bike and car
8
Supply and Demand
Do not affect each other
Move In opposite directions, supply goes up demand goes down
Move In the same direction, supply goes up demand goes up
None of these
9
When supply shifts to the left, what happens to market price and quantity?
Price rises, quantity falls
They both go up
They both go down
Price falls, quantity rises
10
When Creating a supply and demand curve how do you label each axis?
X=Price Y= number of sellers
X= number of buyers Y=number of sellers
X=Quantity Y=Price
X=Quantity Y= number of buyers
11
A stock market crash causes many people to lose money
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
12
Substitute Goods
increase in the price of one leads to an increase the demand for the other
increase in the price of one leads to a decrease in the demand for th other
decrease in the price of one leads to an increase in the demand the other
increase in the price of one leads to a increase in the demand for the othe
13
Government increases taxes on raw beef shipped by farmers:
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
14
When demand is greater than supply, a _________ will result
equilibrium
shortage
surplus
balance
15
In general, when is equilibrium price reached?
When supply is greater than demand
When supply is less than demand
When supply and demand both shift right
When supply is equal to demand
16
A leftward shift of supply will:
increase equilibrium quantity.
decrease demand.
decrease equilibrium quantity.
increase demand.
17
A new ad campaign becomes popular
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
18
What label do you put on the y axis of a supply/demand curve (the vertcial axis or up/down axis)
Demand
Supply
Price
Quantity
19
Why does demand generally become more elastic over long periods of time?
Because producers tend to find substitute goods to buy instead
Because consumers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand inelastic for a good
Because a lack of substitutes can make demand elastic for a good
20
A rival company lowers its prices
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
21
A shift in the supply curve to the left means:
none of the above
quantity producers offer at every price will be less.
quantity producers offer at every price will be high.
quantity producers offer at every price stays the same.
22
If there is greater demand than supply...
Prices fall
Prices stay the same
Prices rise
Everything is free
23
The magic point where supply and demand connects is
a price ceiling
a price floor
equilibrium
Adam Smith land
24
What label do you put on the x axis of a supply/demand curve (the horizontal axis or left/right axis)
Quantity
Demand
Price
Supply
25
If "demand shifts right," demand is...
increasing
decreasing
not changing
26
When the supply curve shifts right, what happens to market price and quantity?
Price rises, quantity falls
They both rise
Price falls, quantity rises
They both fall
27
If "supply shifts left," supply is...
decreasing
not changing
increasing
28
When demand goes up, supply must ____ in the long run.
stay the same
decrease
increase
29
What happens when the supply is high and the demand is low?
Prices go crazy and have a party
The Prices tend to fall
The Prices tend to increase
You have the equilibrium
30
Substitute goods?
Taco Johns & Taco bell, cakes & pies, iPhone & Android
potato flakes & real potatoes, baseball & glove
Kindle & printed books
31
What happens when the Supply is low and the demand is high?
The price increaces
The price decreases
32
If "demand shifts left," demand is...
decreasing
not changing
increasing
33
What Causes a shift in the Demand
Consumer Tastes & Advertising
All of the above
income
Consumer Expectations
34
Price Elasticity of Demand can change over time because......
Price will increase
Over time substitutes are available
More can be supplied
Price will decrease
35
A related complementary good becomes popular
Supply decreases, Equilibrium Price increases
Demand decreases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
36
When supply decreases the supply curve shifts
Right
Left
37
Price has increased causing the supply curve to shift to the left.
True
False
38
Suppose that demand is elastic; what will happen to the company’s total revenue if it raises the price?
It will increase the company’s total revenue
None of the above
It will reduce the company’s total revenue
It will not change the company's total revenue
39
In which kind of economy are prices are influenced by supply and demand?
Command
Market
Traditional
Mixed
40
When supply is greater than demand, a _________ will result
equilibrium
balance
surplus
shortage
41
Which of these factors may cause a shift in the demand curve?
A change in the size of the population
All of the above
Good or bad publicity
A change in trends and fashions
42
This means that demand and supply curves only take
price
into account, rather than market-changing events
Ceteris Paribus
Demand
Equilibrium Price
Supply
43
Why does the availability of substitutes affect price elasticity for a particular good?
Because a lack of substitutes can make demand inelastic for a good
Because producers tend to find substitute goods to buy instead
Because consumers tend to find substitute goods to buy instead
Because a lack of substitutes can make demand elastic for a good
44
A related substitute good becomes popular
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Demand increases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
45
The demand and supply schedule shows:
Demand prices and quantities, but not supply
The same information as a supply and demand graph
Price that everyone would pay
Profit of loss of a business
46
When the supply curve shifts, it changes the ____ and _____ of the equilibrium
price, supply
price, quantity
demand, supply
quantity, demand
47
A new technology allows faster production
Supply increases, Equilibrium Price decreases
Demand decreases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
Supply decreases, Equilibrium Price increases
48
If "supply shifts right," supply is...
decreasing
increasing
not changing
49
Price changes shift the demand curve
False
True
50
A “shortage” is when the producer:
Supplied more quantity than the market demanded and lost money
Did not supply enough quantity to meet demand and lost money
Supplied more quantity than the market demanded and made more money
Supplied as much quantity as the market demanded and made more money
51
Substitute Goods
When two players swap places
Goods whose demand are linked
Goods that are interchangeable in value and price
The person who watches your class when the teacher is gone
52
Consumers’ desire to own something and their ability to pay for that something is called:
Equilibrium Price
Demand
Ceteris Paribus
Supply
53
A “surplus” is when the producer:
Supplied more quantity than the market demanded and made more money
Supplied more quantity than the market demanded and lost money
Supplied as much quantity as the market demanded and made more money
Did not supply enough quantity to meet demand and lost money
54
Substitute goods
French fries and ketchup
Butter and margarine
Bacon and eggs
Pancakes and syrup
55
Which of the following might have caused the demand curve to shift right?
Resource costs dropped
Consumer income fell
Consumer preferences for the product improved
The number of consumers fell
56
The products available for purchase are the:
Equilibrium Price
Supply
Demand
Ceteris Paribus
57
A producer hears a rumor that there will be a recession in the future
Demand decreases, Equilibrium Price decreases
Supply decreases, Equilibrium Price increases
Supply increases, Equilibrium Price decreases
Demand increases, Equilibrium Price increases
58
When demand increases, the demand curve shifts
Right
Left
59
When demand exceeds supply.
shortage
equilibrium
surplus
low prices
60
Complements, or complementary goods...
Are goods that don't go well together- they don't affect each others' sales
Are goods that go well together- when one sells more, the other does too
