Supply and Demand

Question 1

Which of the following goods or services would be considered to be inelastic?

Accepted Answer

insulin

Question 2

The cattle population drops by 20% because of Mad Cow Diseases. The market is hamburgers, which shifter?

Accepted Answer

availability of inputs

Question 3

The Law of Demand states that if prices go up quantity demanded will?

Accepted Answer

decrease

Question 4

The point at which P1 and Q1 intersect represents

Accepted Answer

market equilibrium

Question 5

The blue line represents a

Accepted Answer

supply curve

Question 6

Price floors and price ceilings are established by?

Accepted Answer

governments

Question 7

The green box represents

Accepted Answer

a shortage

Question 8

Which of the following is an example of a price floor?

Accepted Answer

minimum wage

Question 9

The graph represents

Accepted Answer

a surplus

Question 10

Consumers of goods and services want?

Accepted Answer

the lowest price possible

Question 11

The red line represents a

Accepted Answer

demand curve

Question 12

Demand for ice cream decreases because the price of cones increases. Which Shifter?

Accepted Answer

price of complimentary goods

Question 13

A new study shows cheese increases life expectancy. Which shifter does this represent?

Accepted Answer

tastes and preferences

Question 14

The graph represents a

Accepted Answer

change in quantity demanded

Question 15

The Law of Supply states that the higher the price for goods and services, producers will?

Accepted Answer

supply more

Question 16

Producers of goods and services want?

Accepted Answer

the highest profits possible, the lowest price possible

Question 17

The graph represents a

Accepted Answer

change in demand

Question 18

If shortages exist too long, which of the following will develop?

Accepted Answer

black markets

Question 19

Which of the following would lead to a change in the income effect?

Accepted Answer

an increase in taxes

Question 20

Which of the following is an example of a price ceiling?

Accepted Answer

rent controls

Questions 20