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Supply and Demand preferred Flashcards | StudBud
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Supply and Demand preferred
Supply and Demand preferred
20 terms
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StudBud Administration
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AP review for Supply and Demand #apmacro #supply #demand
Flashcards
20 cards
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Practice quiz
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Host live
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Questions
20
Answers
1
Producers of pizza can get cheese for half price. What's the impact on the market for pizza?
↓ΔS
↓ΔQD
↑ΔD
↑ΔS
2
The demand curve shows the relationship between
price and quantity demanded
consumer tastes and the quantity demanded
money income and quantity demanded
price and production costs
3
Gov. bans the import of foreign micro chips. What happens to the market for micro chips?
↓ΔS
↓ΔD
↑ΔQS
↑ΔQD
4
If research shows that Almond Joy increases cognitive ability, what will happen in the market for Almond Joy?
No change
↓ΔQS
↑ΔS
↑ΔD
5
Creating demand and supply curves assumes that the main variable influencing decisions is...
incomes
expectations
prefereences
price
6
Which of the following is most likely to be an inferior good?
fur coats
ocean cruises
used clothing
Dinner at Perry's
7
The price of an iPhone drops from $400 to $99. What happens in the market for iPhone?
↑ΔS
↑ΔQD
↑ΔD
↓ΔD
8
Which of the following will not cause the demand for product K to change?
a change in consumer tastes
an increase in consumer incomes
a change in the price of K
change in the price of close-substitute product J
9
A bicycle co. predicts that a rise in consumer incomes will increase the demand for bicycles.
bicycles are normal goods.
There are many goods that are substitutes for bicycles
there are many goods that are complementary to bicycles
there are few goods that are substitutes for bicycles
10
Netflix announces increase in prices. How will this affect Redbox dvds?
ΔD
ΔQS
ΔQD
ΔS
11
Buyers want to buy more of the cheaper good and less of the more expensive similar good.
substitution effect
price effect
income effect
cost effect
12
Suppose a tax is imposed on product X. We would expect this tax to:
↑ demand for complement good Y and ↓ demand for substitute Z
↑ demands for both complement good Y and substitute Z
↓ demand for complement good Y and ↑ demand for substitute Z
↓ demands for both complementary good Y and substitute Z
13
Increasing the tax on cigarette production raises the price of cigarettes by shifting the:
demand curve for cigarettes rightward
supply curve for cigarettes leftward
supply curve for cigarettes rightward
demand curve for cigarettes leftward
14
Netflix announces increase in prices. Which way will the demand curve shift for Redbox dvds?
Not enough information
Right
Left
No shift
15
In constructing a stable demand curve for product X:
consumer preferences are allowed to vary
the prices of other goods are assumed constant
money incomes are allowed to vary
the supply curve of product X is assumed to be fixed
16
An unusually large crop of coffee beans might:
decrease the quanttty of coffee consumed
increase the price of tea
increase the supply of coffee
increase the price of coffee
17
At the point where the demand and supply curves intersect:
quantity demanded exceeds quantity supplied
the market is in disequilibrium
quantity supplied exceeds quantity demanded
there is neither a surplus nor a shortage of the product
18
For a downsloping demand curve and upsloping supply curve, ↑ in consumer income will:
↑ equilibrium price & quantity if it is a normal good
reduce the quantity demanded, but not shift the demand curve
↓ equilibrium price & quantity if the it is a normal good
have no effect on equilibrium price and quantity
19
Recent demand for donuts, an inferior good, has increased. This increase might be explained by
a change in consumer expectations
a change in buyer tastes
an increase in consumer income
an increase in the price of a substitute good
20
One can say with certainty that equilibrium quantity will increase when supply :
increases and demand decreases
decreases and demand increases
and demand both decrease
and demand both increase