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Equilibrium and elasticity Flashcards | StudBud

Explore/Equilibrium and elasticity

Equilibrium and elasticity

11 terms·StudBud Administration·82 plays

Getting into the weeds on supply and demand

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Questions 11

Answers

1
There is a shortage in a market when...
price is below the equilibrium price
price is above the equilibrium price
the demand curve shifts
the supply curve shifts
2
When demand increases...
equilibrium price falls and equilibrium quantity rises
equilibrium price falls and equilibrium quantity falls
equilibrium price rises and equilibrium quantity falls
equilibrium price rises and equilibrium quantity rises
3
Price elasticity of demand measures...
the stickiness of prices
the responsiveness of consumers to a price change
consumer tastes
the responsiveness of the supply curve
4
A perfectly inelastic demand curve...
is steeper
is a horizontal line
is less steep
is a vertical line
5
There is a surplus in a market when....
price is above the equilibrium level
price is below the equilibrium level
the supply curve shifts
the demand curve shifts
6
Which of these should have the most elastic demand?
food
tomatoes
Roma tomatoes
vegetables
7
When supply in a market decreases...
equilibrium price falls and equilibrium quantity falls
equilibrium price falls and equilibrium quantity falls
equilibrium price rises and equilibrium quantity falls
equilibrium price rises and equilibrium quantity rises
8
Goods that are necessities have....
more inelastic demand
more elastic demand
9
Goods with close substitutes have...
more elastic demand
less elastic demand
10
To calculate elasticity of demand you divide
Q by P
the percentage change in P by the percentage change in Q
the change in Q by change in P
the percentage change in Q by the percentage change in P
11
A perfectly elastic demand curve....
is a line that goes through the origin
is perfectly horizontal
has a more gradual slope
is perfectly vertical