A good that consumers demand less of when income increases.

In any market, quantities supplied and quantities demanded will

be equal at only one price and quantity

Law of Demand is best described by which statement:

Consumers buy more of a good when its price decreases

Which statement explains why prices rise in a market?

There is a shortage in the market.

always rises from left to right

Income from selling one more unit of a good

Law of Supply is best described by which statement:

Tendency of suppliers to offer more goods at a higher price.

Two goods that are bought and used together.

A good that consumers demand more of when income increases.

Advances in technology usually

lower costs and increase supply at all price levels

A situation in which a good or service is unavailable

The point where quantity demanded and supplied are equal

The financial gain made from a transaction.

Describes demand that is very sensitive to a change in price

How will a price drop affect demand of a good?

Increase the quantity demanded of goods

A maximum price legally charged for a good or service

Demand that is not very sensitive to a change in price.

A situation in which supply exceeds demand

The cost of producing one more unit of a good

A graphic representation of a demand schedule

The total amount of money a firm receives from selling g/s

A minimum price for a good or service

studbud

Economics Unit 2

39 termsStudBud Administration2,146 plays

Imported from external platform

Flashcards39 cardsFPractice quizPHost liveL

Questions 39

Answers

1
A price floor is set at $5, what is the state of the market?
Surplus
Shortage
Equilibrium
2
Inferior Good
A good that consumers demand less of when income increases.
Tendency of suppliers to offer more at a higher price.
Two goods that are bought and used together.
A good that consumers demand more of when income increases.
3
In any market, quantities supplied and quantities demanded will
never be equal
always be equal
be equal at only one price and quantity
be equal at several different prices and quantities
4
Graph B shows what?
Decreasing Demand
Decreasing Supply
Increasing Demand
Increasing Supply
5
Product: iPhones, Scenario: the new iPhone 15 releases
B
A
D
C
6
Law of Demand is best described by which statement:
Tendency of suppliers to offer m
Consumers buy more of a good when its price decreases
The quantity demanded is greater than quantity supplied.
Demand that is not very sensitive to a change in price.
7
Which statement explains why prices rise in a market?
producers make a quantity greater than consumers want to buy
There is a shortage in the market.
New producers enter the market
Consumers buy less of a good than have in previous years
8
The supply curve
s always a vertical line
always rises from right to left
is always a horizontal line
always rises from left to right
9
A price floor is set at $2, what is the state of the market?
Surplus
Shortage
Equilibrium
10
Marginal Revenue
Income from selling one more unit of a good
The cost of producing one more unit of a good
Describes demand whose elasticity is exactly equal to 1
A minimum price for a good or service
11
Determine the state of the market and level of disequilibrium: A price floor is set at $4
Shortage, 30
Equilibrium, 0
Surplus, 30
Surplus, 55
12
Graph A shows what?
Decreasing Demand
Increasing Demand
Decreasing Supply
Increasing Supply
13
Which of the following is NOT an example of complements?
calculator and cell phone
rowboat and oars
skis and ski boots
electric shaver and charging cord
14
Law of Supply is best described by which statement:
Tendency of suppliers to offer more goods at a higher price.
The quantity demanded is greater than quantity supplied.
Consumers buy more of a good when its price decreases
Demand that is not very sensitive to a change in price.
15
Complements
A good that consumers demand more of when income increases.
A graphic representation of a demand schedule
A good that consumers demand less of when income increases.
Two goods that are bought and used together.
16
Normal Good
A good that consumers demand less of when income increases.
A good that consumers demand more of when income increases.
Two goods that are bought and used together.
Tendency of suppliers to offer more at a higher price.
17
What is the equilibrium price?
$4
$3
$5
$2
18
What is the equilibrium quantity?
35
40
25
30
19
Advances in technology usually
increase cost and increase supply at lower price levels
increase cost and decrease supply at all price levels.
lower costs and increase supply at all price levels
lower costs and increase supply at higher price levels
20
Shortage
Maximum price that can be legally charged for a good
A situation in which a good or service is unavailable
A situation in which supply exceeds demand
A graphic representation of a demand schedule
21
Equilibrium
The quantity demanded is less than the quantity supplied.
The point where quantity demanded and supplied are equal
Any point where quantity demanded and supplied are not equal
The quantity demanded is greater than the quantity supplied.
22
Profit
A situation in which a good or service is unavailable
The financial gain made from a transaction.
The cost of producing one more unit of a good
The additional income from selling one more unit of a good
23
Elastic
The way quantity supplied reacts to a change in price
A good that we demand less of when their incomes increase.
Describes demand that is very sensitive to a change in price
Describes demand that is not sensitive to a change in price.
24
How will a price drop affect demand of a good?
Not affect the quantity demanded of goods
Increase the quantity demanded of goods
Decrease the quantity demanded of goods
Change the law of demand
25
Price Ceiling
A minimum price for a good or service
The cost of producing one more unit of a good
A maximum price legally charged for a good or service
Demand that is not very sensitive to a change in price.
26
Product: iPhones, Scenario: more stores are licensed to sell iPhones
A
D
B
C
27
Inelastic
Describes demand whose elasticity is exactly equal to 1
Measure of how quantity supplied reacts to change in price
A minimum price for a good or service
Demand that is not very sensitive to a change in price.
28
Graph D shows what?
Decreasing Supply
Decreasing Demand
Increasing Supply
Increasing Demand
29
Surplus
A situation in which a good or service is unavailable
Maximum price that can be lega
A graphic representation of a demand schedule
A situation in which supply exceeds demand
30
Marginal Costs
Describes demand whose elasticity is exactly equal to 1
A minimum price for a good or service
Income from selling one more unit of a good
The cost of producing one more unit of a good
31
Demand Curve
Describes demand whose elasticity is exactly equal to 1
Describes demand that is not sensitive to a change in price.
A graphic representation of a demand schedule
Consumers buy more of a good when price decreases
32
Total Revenue
The additional income from selling one more unit of a good
The total amount of money a firm receives from selling g/s
The financial gain made from a transaction
A graphic representation of a demand schedule
33
When the actual price in a market is below the equil
Equilibrium
Excess supply
Surplus
Shortage
34
Product: iPhones, Scenario: Androids go on sale
B
D
A
C
35
Product: iPhones, Scenario: workers demand a pay raise
B
A
D
C
36
A price ceiling is set at $4, what is the state of the market?
Equilibrium
Surplus
Shortage
37
Graph C shows what?
Decreasing Demand
Decreasing Supply
Increasing Demand
Increasing Supply
38
Price Floor
A minimum price for a good or service
A maximum price legally charged for a good or service
Demand that is not very sensitive to a change in price.
The cost of producing one more unit of a good
39
A price ceiling is set at $2, what is the state of the market?
Surplus
Shortage
Equilibrium

Economics Unit 2 Flashcards | StudBud