If you drew the demand curve it would

slope downward and to the right

At a given price, a surplus occurs when

quantity supplied is greater than quantity demanded

Which of the following has caused this demand curve to shift?

increase in the price of a substitute

When producers offer fewer products for sale at each and every price in the market,

the supply curve has shifted to the left

Equilibrium is reached when what occurs?

quantity supplied equals quantity demanded

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Econ - Unit 2 Review

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Questions 19

Answers

1
Which of these is a problem in the execution of a rationing system?
price flexibility
administrative expense
price neutrality
market spikes
2
An increase in the price of cereal causes a decrease in the demand for milk. The two products
are complements
are substitutes
are demand elastic
are unrelated
3
What is the only factor that can cause a change in the quantity supplied?
Number of Sellers
Number of Buyers
Government Regulations
Price
4
If you drew the demand curve it would
be a flat line
what is a demand curve?
slope downward and to the right
slope up and to the left
5
Advertising is used to
create supply
create consumer demand
create consumer needs
minimize the income effect
6
What effect would an above average crop most likely have on the price of that crop?
equilibrium
decrease
no effect
increase
7
Which of these is most likely to create a surplus of an item?
a price floor
a market price
a price ceiling
a fixed price
8
The graph is an example of
change in quantity supplied
change in supply
change in demand
change in quantity demanded
9
Which product most likely has a demand that is inelastic?
green beans
a meal at a restaurant
a vital medicine
a vacation
10
An increase in the price of cameras results in a decrease in the price of film. The two goods
are substitutes
are unrelated
are complements
are demand elastic
11
The movement shown in the graph represents a change in what?
marginal utility
demand
quantity demanded
demand elasticity
12
How much of this product is demanded at $4.00?
4 units
5 units
1 unit
2 units
13
At what price is the market "cleared?"
$25
$45
can't tell from this graph
$20
14
At a given price, a surplus occurs when
there is an equilibrium price
when quantity demanded is greater than the quantity supplied
quantity supplied is greater than quantity demanded
quantity demanded and quantity supplied are equal
15
Which of the following has caused this demand curve to shift?
decrease in the price of a substitute
increase in the price of a complement
increase in the number of sellers
increase in the price of a substitute
16
Because of a modest increase has little or no effect, demand for the given product is
elastic
inelastic
unit elastic
complementary
17
Supply of a product usually decreases if
the cost of inputs goes down
taxes on the product increase
the price of product increases
more producers enter the market
18
When producers offer fewer products for sale at each and every price in the market,
they expect subsidies
the supply curve has shifted to the right
the price per unit decreases
the supply curve has shifted to the left
19
Equilibrium is reached when what occurs?
prices increases
there is no change in the quantity supplied
prices are inelastic
quantity supplied equals quantity demanded

Econ - Unit 2 Review Flashcards | StudBud