Supply and Demand

Question 1

If the cost of production represents a large portion of income, the demand for a good will be

Accepted Answer

Elastic

Question 2

All Businesses focus on reducing ________ Cost

Accepted Answer

Total

Question 3

The point at which quantity demanded and quantity supplied are equal

Accepted Answer

Equilibrium

Question 4

If the price of a good is raised $5 and quantity demanded decreases, that means the good is

Accepted Answer

Elastic

Question 5

Tendency of suppliers to offer more of a good at higher prices

Accepted Answer

Law of Supply

Question 6

Goods that are used in place of one another

Accepted Answer

Substitutes

Question 7

When quantity supplied is more than quantity demanded

Accepted Answer

Surplus

Question 8

A good that consumers demand less of when their incomes increase

Accepted Answer

Inferior

Question 9

A cost that does not change no matter how much is produced

Accepted Answer

Fixed

Question 10

Two goods that are bought and used together

Accepted Answer

Complements

Question 11

If the price of a good is $200 and people demand 10 of it, what is the total revenue?

Accepted Answer

$2,000

Question 12

The change in consumption resulting from a change in overall income

Accepted Answer

Income Effect

Question 13

On which kinds of goods do governments generally place price ceilings?

Accepted Answer

Those that are essential but too expensive for consumers

Question 14

When quantity demanded is more than quantity supplied

Accepted Answer

Shortage

Question 15

Demand that is not very sensitive to a change in price

Accepted Answer

Inelastic

Question 16

Inelastic demand occurs when:

Accepted Answer

All are correct

Question 17

If the price of a good increases but quantity demanded stays the same, the good is considered

Accepted Answer

Inelastic

Question 18

A lack of oil extracting machinery in oil producing countries would most likely

Accepted Answer

Shift the supply curve to the left

Question 19

A cost that rises and falls depending on how much is produced

Accepted Answer

Variable

Question 20

This is an example of a variable cost:

Accepted Answer

Raw Materials

Question 21

The maximum price set by law

Accepted Answer

Price Ceiling

Question 22

Consumers buy more of a good when it's price decreases and less when price increases

Accepted Answer

Law of Demand

Question 23

Total receipts is another term for

Accepted Answer

Total revenue

Question 24

A minimum price, set by the government

Accepted Answer

Price floor

Question 25

An increase in a goods price causes a ______ in the quantity demanded

Accepted Answer

Decrease

Question 26

Payment to businesses by the government

Accepted Answer

Subsidies

Question 27

A market in which goods are sold illegally

Accepted Answer

Black Market

Question 28

When consumers react to an increase in price by buying less of that good and more of another

Accepted Answer

Substitution Effect

Question 29

A good that consumers demand more of when their incomes increase

Accepted Answer

Normal

Question 30

Total amount of money a firm receives by selling goods or services

Accepted Answer

Total Revenue

Supply and Demand

Questions 30

Supply and Demand

Questions 30