If Demand is Price Elastic, then:

a fall in price will raise total revenue.

Organizers willing to take a risk

If price goes up, Quantity supplied goes up

The Price Elasticity of Demand is:

The ratio of change in Quantity Demanded to Change in price

A Complementary good is:

A good that enhances the value of another good

All are determinants of Demand Elasticity EXCEPT:

Does the government subsidize this item?

If Price goes down, Quantity Demanded goes up

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U2: Supply and Demand Review

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Supply and Demand Review

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Questions 27

Answers

1
If price goes up and revenue goes up:
Inelastic
Unit Elastic
Elastic
All of the Above
2
All are factors of production EXCEPT:
Capital
Government
Labor
Land
3
If Demand is Price Elastic, then:
a rise in price won't have any effect on total revenues.
a rise in price will raise total revenue.
a fall in price will raise total revenue.
a fall in price will lower the quantity demanded.
4
Entrepreneurship =
Natural Resources used in production
Goods used to produce other goods
Organizers willing to take a risk
Economic system of North Korea
5
The extra output created by adding one more unit of variable input
Marginal Product
Marginal Cost
Marginal Analysis
Marginal Revenue
6
Known as the "Purgatory" between Elastic and Inelastic
Even Elastic
Zero Elastic
Unit Elastic
Paralastic
7
If an item is needed immediately and there are not many substitutes, the demand is often:
Unit Elastic
Inelastic
Diminishing Elastic
Elastic
8
Example of a variable cost:
Payment of executives
Rent paid to a landowner
Property Taxes
The cost of alumium
9
The change in quantity demanded because of a change in price that alters consumer's income
Income Effect
Substitution Effect
Demand Effect
Quantity Effect
10
If an item has many substitutes and is not necessary for life, its demand is often:
Unit Elastic
Positive Inelastic
Inelastic
Elastic
11
Law of Supply:
If Price goes up Quantity Supplied goes down
If Price stays constant, Revenue goes up
If price goes down, Quantity Supplied goes up
If price goes up, Quantity supplied goes up
12
When Quantity Supplied = Quantity Demanded
Unit of Equilibrium Maximization
Equilibrium Price
Elasticity of Demand
Producer's Revenue
13
The Price Elasticity of Demand is:
The responsiveness of revenue to a change in quantity
the response of revenue to a change in price.
The ratio of change in Quantity Demanded to Change in price
the ratio of change in quantity demanded to change in price
14
All of the following are examples of Capital EXCEPT:
Iron Ore
Welding Torch
Computers
Assembly Line
15
This figure shows a ________ Demand curve
Elastic
Inelastic
Unit Elastic
Quazilastic
16
In this stage, marginal product is still positive but the increase is slowing down
Negative Marginal Returns
So-so Marginal Returns
Decreasing Marginal Returns
Increasing Marginal Returns
17
Variable costs are costs that occur no matter what
True
False
18
A Demand curve slopes ___ and a Supply curve slopes _____
Up, Down
Down, Up
Up, Up
Down, Down
19
This figure shows a _____ Demand Curve
Unit Elastic
Quazilastic
Inelastic
Elastic
20
The extra money a business receives from the production and sale of one extra unit of output
Marginal Revenue
Marginal Cost
Marginal Profit
Marginal Subsidies
21
Costs that occur with little to no activity by the firm
Overhead
Variable Costs
Inelastic Costs
Elastic Costs
22
A Complementary good is:
A good that hurts the value of another good
A good that can be used in the place of another good
A good that enhances the value of another good
A good that cannot be replaced
23
When each worker added decreases the productivity of the firm
Not Good Marginal Returns
Increasing Marginal Returns
Decreasing Marginal Returns
Negative Marginal Returns
24
In this stage, the marginal product of each worker added increases
Negative Marginal Returns
Increasing Marginal Returns
Decreasing Marginal Returns
Dece Marginal Returns
25
What customers consider spending, Firms consider ______
Costs
Revenue
Supply
Complements
26
All are determinants of Demand Elasticity EXCEPT:
Does the government subsidize this item?
Can the purchase be delayed?
Does the purchase use a large amount of income?
Are adequate substitutes available?
27
Law of Demand:
If Price goes up, Quantity Demanded goes up
If Price stays constant, Demand will fall
If Price goes down, Quantity Demanded goes up
If Quantity Demanded goes up, Marginal Revenue will fall

U2: Supply and Demand Review Flashcards | StudBud