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Supply, Demand, Equilibrium, & Government Set Prices Flashcards | StudBud
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Supply, Demand, Equilibrium, & Government Set Prices
Supply, Demand, Equilibrium, & Government Set Prices
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1
Using the graph, determine the equilibrium price.
$4
$3
$2
$1
2
A table that shows all of the possible quantities demanded at different prices is a
demand chart.
demand schedule.
demand chart.
demand curve.
3
Diminishing marginal utility means that each additional unit of a good consumed will have
decrease the total benefit of consuming the good.
not change the total of consuming the good.
less additional benefit than the previous unit.
the same additional benefit as the previous unit.
4
Find the equilibrium Price and Quantity
300 at $1.20
200 at $0.80
400 at $1.60
250 at $1.00
5
dividing up goods or services without considering the price
efficient resource allocation
supply shock
black market
rationing
6
What happens when wages are set above the equilibrium level by law? Ex: Minimum Wage
Firms employ fewer workers than at the equilibrium wage
Firms try to break the law and hire people at equilibrium.
Firms hire more workers but less hours than equilibrium wage
Firms employ more workers than at the equilibrium wage
7
Elastic demand means that a change in price means there is a ______ change in quantity demanded
No change
Small
Large
8
How would you describe the elasticity of this good?
Elastic
Inelastic
Unitary elastic
Perfectly Elastic
9
At a given price, a surplus occurs when
the quantity supplied is less than the quantity demanded.
the quantity supplied is greater than the quantity demanded.
the quantity demanded is the same as the quantity supplied.
the quantity demanded is more than the quantity supplied.
10
If demand for a product doesn't change even if the price increases A LOT, this means demand is
Inelastic
Elastic
Non-elastic
Unit Elastic
11
Which event in California would most likely shift the supply curve for avocados to the left?
an early frost accompanied by ice storms
evidence that avocados strengthen bones
rise of mangoes as a popular food item
an influx of new low-wage workers
12
Price cieling is...
The maximum price set below the equilibrium
The maximum amount that is allowed to be charged for tuition
The minimum price set below the equilibrium
13
Which is the best example of the law of supply
Perdue Chicken opens a new factory
A pizzeria increases slices as price increases
A restaurant purchases a new oven
A citrus farmer doubles his land
14
Demand for a good that is sensitive to a change in price is
Result elastic
Elastic
Unit Elastic
Inelastic
15
Which one of these products is elastic?
Chocolate
Cigarettes
Electricity
EpiPens
16
An increase in QUANTITY demanded means a change in:
Consumer Tastes
Price only
Buyers income
# Buyers
17
What is the situation where quantity supplied is equal to quantity demanded referred to as?
equity among buyers
market equilibrium
government intervention
fair distribution of goods and services
18
What usually occurs when new technology is applied to the production of a good?
the government will intervene to maintain competition
the demand for the good increases
the supply of the good increases
the supply of the good decreases
19
What is a Price Floor?
Lowest Price charged for product
Highest Price charged for product
Standing on money
Look below you
20
Determine a product’s equilibrium price by examining the following table:
$11.50
$11.00
$12.50
$12.00
21
If the gov't wants to increase the amount of a good that is produced, like college it will
give producers of the good a subsidy.
apply an excise tax to the sale of the good.
pass a law requiring the firms to produce the good.
place a tariff on the import of the good.
22
If your income increases and you buy less ramen noodles, then ramen noodles are
complementary goods.
inferior goods.
normal goods.
substitute goods.
23
A price that is higher than the equilibrium price
it will be more efficient than the equilibrium.
it will create a surplus.
it will create a shortage.
the government will have to get involved.
24
According to the law of demand, if the price of a good increases, then
supply will increase.
demand will decrease.
quantity demanded will decrease.
quantity supplied will decrease.
25
To show a decrease in demand you would:
shift right
move along
can't tell
shift left
26
To show an increase in demand you would:
can't tell
shift right
shift left
move along
27
A supply curve
slope upward from left to right.
has a positive slope.
all of the above are correct.
is a graphic representation of a supply schedule.
28
Which of the following will NOT cause a change in the demand for a particular good?
a change the price of the good
an increase in the number of consumers
income level of consumers
a change in the price of a substitute good
29
Price cieling and price floor are example of this government intervention
Price Gouching
Tariffs
Price Control
Taxes
30
You expect the price of gasoline to increase tomorrow, so fill up today. This is an example of
market size.
consumer expectations.
the income effect.
government regulation.
