Supply, Demand, and Elasticity

Question 1

If demand is ____ then price cuts will _____ spending

Accepted Answer

elastic, increase

Question 2

When there is a shortage

Accepted Answer

Demand is greater than supply

Question 3

The price elasticity of demand measures

Accepted Answer

The responsiveness of quantity demanded to change in prices

Question 4

Which of these is neither a good nor a service?

Accepted Answer

A $20 bill

Question 5

If you are WILLING and ABLE to buy, you have:

Accepted Answer

Demand

Question 6

You can easily find an item that is scarce

Accepted Answer

False

Question 7

Necessity goods are:

Accepted Answer

Inelastic

Question 8

When there is a surplus

Accepted Answer

Supply is greater than demand

Question 9

The term demand refers to...

Accepted Answer

The number of people who want or need something

Question 10

Elasticity of supply is a measure of how responsive consumers are to changes in price

Accepted Answer

False

Question 11

An item with a high supply should be easy to find.

Accepted Answer

True

Question 12

If you are selling a ticket to prom, you are willing and able.. you have?

Accepted Answer

Supply

Question 13

What determines Demand Elasticity?

Accepted Answer

Necessity or luxury, Urgency of purchase, Price relative to income, Availability of substitutes

Question 14

Which of the following is an example of an elastic good?

Accepted Answer

TV

Question 15

Demand that is NOT very sensitive to price change

Accepted Answer

Inelastic

Question 16

Diminishing Marginal Utility

Accepted Answer

more of a specific good, demand for that good decreases

Question 17

When Supply and Demand meet

Accepted Answer

Equilibrium

Question 18

Which of these items has an inelastic supply

Accepted Answer

Gasoline

Question 19

A factor NOT affecting demand is

Accepted Answer

Time

Question 20

what is elasticity of supply?

Accepted Answer

Producer response to price change

Question 21

What might happen if the demand for a new type of sneaker began rising quickly?

Accepted Answer

The sneakers company would raise the price of the shoes

Question 22

What is elasticity of demand?

Accepted Answer

Consumer response to price change

Question 23

What determines Supply Elasticity?

Accepted Answer

Mobility of inputs, Storage capacity, Availability of inputs: raw materials, trained people, Time needed for production

Question 24

Higher per unit production cost would cause producers to

Accepted Answer

Supply less

Question 25

Supply refers to..

Accepted Answer

The amount of something that is available

Supply, Demand, and Elasticity

Questions 25

Supply, Demand, and Elasticity

Questions 25