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Duplicate of Supply & Demand Flashcards | StudBud
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Duplicate of Supply & Demand
Duplicate of Supply & Demand
25 terms
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An economics Quiz to explain the basics of Supply and Demand
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
If a price increase of good A increases the quantity demanded of good B, then good B is a
complementary good
inferior good
bargain
substitute good
2
When a market is in equilibrium
Excess demand and excess supply are zero
Quantity demanded equals quantity supplied
The market is cleared by the equilibrium price
All of the above
3
Which of the following will cause a change in quantity supplied?
A change in input prices.
Technological change.
A change in the number of firms in the market.
A change in the market price of the good.
4
What do you need to optimize a buyer's utility?
Budget constraint and indifference curves
Supply curve and demand curve
Budget constraint and price
Price and quantity
5
When the supply curve shifts outwards, what is the effect on equilibrium price and quantity?
Price increases, quantity increases
Price decreases, quantity decreases
Price decreases, quantity increases
Price increases, quantity decreases
6
A ceiling price of $15 would cause…
a shortage of 600.
a shortage of 800.
a surplus of 800.
a surplus of 600.
7
Price ceilings are imposed increase price above the free market equilibrium price
False
True
8
Which of the following could remedy a shortage caused by a price ceiling?
Inward shift of the supply curve
Outward shift of demand and inward shift of supply
Outward shift of the demand curve
Outward shift of the supply curve
9
Supply is the quantity of a good sellers wish to sell each time the market opens
True
False
10
A supply curve is directly affected by
government regulation
technology
all of the above
input costs
11
A demand curve can shift because of changing
prices of related goods
incomes
all of the above
tastes
12
If input prices increase, all else equal
demand will decrease.
quantity supplied will decrease.
supply will increase.
supply will decrease.
13
Which of the following would decrease the supply of wheat?
A decrease in the price of pesticides.
An increase in the price of corn.
An increase in the demand for wheat.
none of the above
14
If good A and good B are perfect complements, which combination is the most preferable?
A, 3 B
A, 4 B
A, 1 B
A, 10 B
15
What do you need to optimize a seller's profit?
Total Variable Costs, Total Fixed Costs, Marginal Cost
Price, Marginal Cost, and Average Cost
Price, Average Cost, and Marginal Revenue
Price, Marginal Revenue, and Average Revenue
16
Which of the following would lead to an INCREASE in the demand for golf balls?
none of the above
An increase in household income, they're a normal good
A decrease in the cost of producing golf balls.
An decrease in the price of golf balls.
17
Which of the following is something indifference curves can never do?
Have an upwards slope
Not curve at all
Cross
Curve towards the origin
18
An increase in price will cause a supply curve to shift to the left
True
False
19
If the price of a complement increases, all else equal,
quantity demanded will increase.
quantity supplied will increase.
demand will increase.
demand will decrease.
20
An increase in consumer income will increase demand for a ____ but decrease demand for a ____
normal good, complementary good
substitute good, inferior good
inferior good, normal good
normal good, inferior good
21
A floor price of $30 would cause…
a shortage of 150.
a surplus of 400.
a shortage of 400.
a surplus of 150.
22
When we know the quantity of a product that buyers wish to purchase, we know?
Supply
Demand
excess demand
excess supply
23
In a competitive market, marginal revenue is equal to which of the following?
Profit
Average Variable Cost
Marginal Utility
Average Cost
24
The equilibrium price clears the market; it is the price at which ________ _________
quantity demanded equals quantity supplied
Everything is sold
b and c
excess demand is zero
25
________ and ________ do not directly affect the demand curve
the costs of production, bank opening hours
the price of related goods, preferences
the price of related goods, consumer incomes
consumer incomes, tastes
