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Ch. 5, Sect. 1: Understanding Supply Flashcards | StudBud

Explore/Ch. 5, Sect. 1: Understanding Supply

While supply is simply amount available, quantity supplied is amount available...

If supply is not very responsive to price changes, is the supply elastic or inelastic?

Ch. 5, Sect. 1: Understanding Supply

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Econ quiz to review introductory concepts of supply

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Questions 7

Answers

1
If supply is not very responsive to price changes, is the supply elastic or inelastic?
depends on gov intervention
elastic
depends on the shift in the ceteris paribus curve
inelastic
2
While supply is simply amount available, quantity supplied is amount available...
depending on gov intervention
all possible prices
a specific price
depending on laissez faire policies
3
Falling prices in market can drive firms away. What concept is there in rising/falling prices?
ceteris paribus
non-price factors
Law of diminishing returns
shift in demand curve
4
What is revenue?
Money saved to purchase goods at a later time
Money made from the sale of goods
Money made from investments that are never sold
Money used to purchase goods or services
5
According to Law of Supply, what happens to supply when prices to rise?
supply drops
supply rises
rise or fall depends on gov intervention
rise or fall depends on ceteris paribus
6
Supply curves act the same as demand curves when price or non-price factors are in play
Depends if laissez faire practices are prohibited
False
True
Depends on if gov intervention is involved
7
When prices rise in a particular market, what effect does this have on other sellers?
Drives competition away from the market
Always drives customers toward that market
Firms are drawn toward the market with rising prices
Firms are drawn toward the substitute market