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Supply and Demand Academic Spring 2017 Flashcards | StudBud
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Supply and Demand Academic Spring 2017
Supply and Demand Academic Spring 2017
27 terms
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StudBud Administration
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Supply, Demand, and Equilibrium
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
The result of the QD being greater than the QS is called
rationing
surplus
equilibrium
shortage
2
The demand for goods and services in an area would increase if...
people's incomes decreased
people expected hard economic times
a new apartment building in the area filled with families
a large number of residents moved out of the area
3
The extent to which a change in price causes a greater change in the quantity demanded is...
complements
demand elasticity
demand inelasticity
substitute
4
What happens to the supply of goods that producers are willing to produce when prices fall?
diminishing marginal utility
firms supply more
firms supply less
supply is constant
5
The equilibrium price is the point where...
supply and demand curves cross
demand is in shortage
there is a surplus, top of supply curve
supply is in shortage
6
According to the law of demand, quantity demanded and price ____________.
are not related
move in opposite directions
move in the same direction
depend on marginal utility
7
At the ___________ price there is neither a surplus nor a shortage.
ceiling
profitable
equilibrium
exchange
8
According to the law of supply, as prices go up, supply goes ____
stays the same
up
equilibrium
down
9
A decrease in demand causes equilibrium prices to
fall
fluctuate
rise
stay the same
10
When quantity supplied is greater than quantity demanded, what problem exists?
equilibrium
surplus
shortage
inelastic
11
Which of the following would have an affect on market demand?
producer expectations
changes in consumer tastes
changes in the cost of resources
changes in government policy
12
Generally, when the price of an item falls, what happens to the demand for that product?
demand falls as well
an increase in demand
demand stays the same
people substitute other goods
13
When quantity demanded is greater than quantity supplied, what problem exists?
surplus
equilibrium
shortage
supply
14
Which of the following factors would affect market supply?
change in consumer expectations
change in the number of consumers
better technology
change in consumer incomes
15
When market demand increases in a city or town, the market demand curve will shift to the...
right
left
16
Prices are established primarily through
government decisions
supply and demand
taxes and subsidies
complements and substitutes
17
Which would be a substitute to Coca Cola?
JIF peanut butter
Sprite
Fritos corn chips
Pepsi
18
What would be a complement to peanut butter?
jelly
tennis racket
a light bulb
JIF
19
The result of QS being greater than QD is called
equilibrium
shortage
rationing
surplus
20
a government payment to an individual or business for certain actions are called...
market supply
subsidies
taxes
monopolies
21
Some products, such as DVD players and DVDS, that are used together are called ____________.
elastic
substitutes
complements
surplus
22
The situation in which the QS of a good is equal to the QD at that price is called
market shortage
market surplus
market disequilibrium
market equilibrium
23
Which would be designated as a shortage?
QD > QS
QD < QS
QD - QS = GDP
QD = QS
24
What happens to the demand for bread and milk when there is a threat of a snow storm?
the point of supply moves along the curve--no new curve
demand rises-new curve shifts right
demand falls
demand stays the same
25
Competing products are called _________ because consumers can use one in place of another.
public goods
private goods
complements
substitutes
26
Which of the following causes a change in market demand?
number of consumers
decrease of technology
cost of resources
taxes on businesses
27
According to the law of demand, as prices go down, demand goes ____
up
disappears
stays the same
down
