What is a government subsidy?

a payment from the government that supports a business or market

How would an improvement in technology affect the supply or demand of a good?

supply would increase and shift to the right

If the price of cream cheese increases, how does that affect demand for bagels?

Demand for bagels will decrease

When the government gives a subsidy to the wheat industry we would expect to see

an increase in the amount of wheat planted

If a good is referred to as a substitute for another good, what does that mean?

the consumers see the two goods as mostly the same - interchangeable

What does a shift in demand mean?

At every price, consumers buy a different quantity than before

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Economics unit 2 Supply and Demand

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Questions 23

Answers

1
When supply exceeds demand
a surplus
opportunity cost
a shortage
a trade-off
2
What motivates suppliers?
meeting demand
The consumers
profit
doing what they love
3
inferior goods are
name brand goods
sad sad goods
store brand goods
goods found a specialty store
4
When the government sets a price ceiling for gas at $2 when the equilibrium is $4, what would happen
increase in supply of gas
a shortage
a new equilibrium
a surplus
5
If consumers expect prices to increase in the future, what will happen to their demand now
there is no relationship between the two
their demand now will increase
their demand now will decrease
their demand will stay the same
6
If input costs get cheaper what will happen to supply?
Increased supply
Decreased demand
Increased demand
Decreased supply
7
two goods that are commonly bought together
normal goods
substitutes
inferior goods
complements
8
normal goods are
happy happy goods
goods found at a specialty store
name brand goods
store brand goods
9
The law of demand states that as prices increase, quantity demanded will
increase
increase at first then decrease
decrease
stay the same
10
The law of supply states that as prices decrease, suppliers will supply ____ quantity
there is no law of supply
a lower
a greater
the same
11
Unlimited needs and wants, but only limited resources
scarcity
shortage
surplus
temporary shortage
12
When people have a decrease in income they buy more normal goods
True
False
13
When demand exceeds supply
a fun party
a surplus
a shortage
an opportunity cost
14
What is a government subsidy?
a bad substitute teacher
a substitution for a gooda
tax imposed by the government on a good or service
a payment from the government that supports a business or market
15
The law of demand has what type of relationship between price and quantity?
linear
opposing
permendicular
inverse
16
Marty Beans sets the price of t-shirts below the equlibrium price we would expect to see
a subsidy of t-shirts
a shortage of t-shirts
a scarcity of t-shirts
a surplus of t-shirts
17
How would an improvement in technology affect the supply or demand of a good?
demand would decrease and shif to the left
supply would increase and shift to the right
demand would increase and shift to the right
supply would increase and shift to the left
18
When opening a gusiness, what price would you sell your good at so demand equals supply?
a price below equilibrium
A price above equilibrium
equilibrium price
a price off the charts
19
If input costs get more expensive what will happen to supply?
increased demand
Decreased supply
increased supply
Decreased demand
20
If the price of cream cheese increases, how does that affect demand for bagels?
Demand for cream cheese will increase
There will be no change in demand for bagels
Demand for bagels will decrease
Demand for bagels will increase
21
When the government gives a subsidy to the wheat industry we would expect to see
an increase in demand for wheat products
a decrease in the demand for wheat products
an decrease in the amount of wheat planted
an increase in the amount of wheat planted
22
If a good is referred to as a substitute for another good, what does that mean?
the consumers see the two goods as mostly the same - interchangeable
the two goods are the exact same
The two goods are commonly bought together
the two goods are sold together
23
What does a shift in demand mean?
consumers will buy more when the price goes down
At every price, consumers buy a different quantity than before
consumers bought more of a product as it got more expensive
suppliers are willing to supply more at a higher price

Economics unit 2 Supply and Demand Flashcards | StudBud