stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Supply & Demand Flashcards | StudBud
Explore
/
Supply & Demand
Supply & Demand
26 terms
·
StudBud Administration
·
349 plays
Supply and Demand
Flashcards
26 cards
F
Practice quiz
P
Host live
L
Questions
26
Answers
1
Forces that reduce a firm's average cost of production as the firm's size grows
fixed cost
marginal cost
economies of scale
elasticity of supply
2
In the market for wheat, new technology improves farming and harvesting techniques
Supply shifts left
Supply shifts right
Demand shifts right
Demand shifts left
3
Any production cost that changes as output changes
long run cost
variable cost
total cost
supply cost
4
Price increases 5% and revenue falls by 15%, demand must be
Neutral to Inferior
Elastic
Inelastic
Unit Elastic
5
In the market for new homes, consumer incomes rise
Demand shifts left
Demand shifts right
Supply shifts left
Supply shifts right
6
A measure of responsiveness of quantity supplied to change in price
marginal revenue
total cost
variable cost
elasticity of supply
7
The change in total cost resulting from producing one more unit of product
law of supply
short run supply
marginal cost
law of diminishing production
8
Is the image in the graph a surplus or shortage?
Shortage
Surplus
9
The change in total product that results from a one-unit increase of a resource
law of supply
marginal revenue
marginal product
short run supply
10
According to the law of demand, as price rises
Consumers buy less
Producers sell less
Consumers buy more
Producers sell more
11
If the demand curve shifts left, what will happen to the market price and quantity?
They both go up
Price rises, quantity falls
They both go down
Price falls, quantity rises
12
In the market for chocolate, disease in cocoa trees reduces the size of the harvest
Demand shifts right
Supply shifts left
Supply shifts right
Demand shifts left
13
What is the best explanation for the change you see in the supply curve?
Production technology improved
Subsidies to businesses fell
Resource costs rose
Taxes rose
14
In the market for car tires, the cost producers pay for rubber and steel belting rises
Demand shifts right
Supply shifts right
Supply shifts left
Demand shifts left
15
An example of a fixed cost would be ...
food cost for a restaurant
wages paid to workers
rent paid for using a building
electricity bills
16
Is the following graph showing a surplus or shortage?
Shortage
Surplus
17
Costs that stay the same no matter what quantity are produced are called
Fixed costs
High costs
Total costs
Variable costs
18
The type of costs that change with the number of units produced is called
Variable costs
Fixed costs
Total costs
Unit costs
19
Which of the following might have caused the demand curve to shift right?
The number of consumers fell
Consumer income fell
Resource costs dropped
Consumer preferences for the product improved
20
A period of time during which at least one of a firm's resources is fixed.
long run
long run average cost curve
short run
marginal cost run
21
If consumer income rises, how would the demand curve change?
It will shift left
Consumers will buy less
It will not change
It will shift right
22
When supply shifts to the left, what happens to market price and quantity?
They both go up
Price rises, quantity falls
They both go down
Price falls, quantity rises
23
If the price of avocados goes down what will happen to the demand for tortilla chips?
Goes down
Sideways
Stays the same
Goes up
24
A period of time during which all of a firm's resources can be varied
fixed cost
short run
long run
home run
25
When the supply curve shifts right, what happens to market price and quantity?
Price rises, quantity falls
Price falls, quantity rises
They both fall
They both rise
26
The total output of a firm
total cost
total product
total demand
total supply
