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Demand, Supply and BOTH Flashcards | StudBud
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Demand, Supply and BOTH
Demand, Supply and BOTH
28 terms
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Review game over supply and demand #supply #demand #economics
Flashcards
28 cards
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Questions
28
Answers
1
When either the demand or supply curve shifts, the equilibrium point remains the same.
False
True
2
When quantity supplied is greater than the quantity demanded at a particular price, ___ exists.
shortage.
equilibrium.
surplus.
black market.
3
When a surplus exists in a market, price is
lower than quantity supplied.
higher than quantity supplied.
below equilibrium.
above equilibrium.
4
The production costs that change as the level of output changes are called
fixed costs.
variable costs.
overhead costs.
average costs.
5
Over time, a price floor may cause
a shortage.
a surplus.
government intervention.
rationing.
6
Competition in a market tends to
increase supply.
have little effect on supply.
decrease supply.
cause supply to fluctuate.
7
Over time, a price ceiling may cause
rationing.
a surplus.
government intervention.
a shortage.
8
If factors other than price cause an increase in the demand for products, a demand curve shifts
upward.
to the right.
to the left.
downward.
9
If there are readily available substitutes for a product, that product will tend to have
income effect.
substitution effect.
elastic demand.
inelastic demand.
10
The price of fuel used in farm machinery increases to a new high. The supply of corn will
stay the same.
decrease.
increase.
11
A major drought destroys corn crops in America's heartland. The supply of corn will
decrease.
increase.
stay the same.
12
The U.S. government increases the subsidy to corn production. The supply of corn will
increase.
stay the same.
decrease.
13
If prices of resources fall, supply will
stabilize.
fluctuate.
increase.
decrease.
14
The main form of communication between producers and consumers in a free-enterprise market is
total costs.
costs.
prices.
supply curves.
15
If a product is not a necessity, it will tend to have
elastic demand.
an income effect.
a subsitution effect.
inelastic demand.
16
If competition in the cell phone market increases, the supply curve for cell phones will shift
upward.
to the right.
downward.
to the left.
17
The production costs that change as the level of output changes are called
fixed costs
marginal costsqq
total costs
variable costs
18
What situation exists when QS and QD for a product are equal at the same price?
market disequilibrium
price equivalency
market equilibrium
market balance
19
If new pollution controls are put on companies that make wrenches, the supply of wrenches will
increase.
decrease.
fluctuate.
stabilize.
20
If a good can be made quickly, inexpensively & using a few, readily available resources, it has
elastic supply.
inelastic supply.
diminishing returns.
negative returns.
21
The term for the amount of satisfaction a consumer receives from consuming a product is
income.
price.
utility.
substitution.
22
If factors other than price cause a decrease in demand for products, a demand curve shifts
to the left.
to the right.
downward.
upward.
23
If a new tax is levied on the producers of widgets, the supply curve for widgets will shift
upward.
downward.
to the right.
to the left.
24
A government regulation that sets a minimum level for prices is called a
price ceiling.
price floor.
black market.
minimum wage.
25
The law of supply states that consumers will purchase more at low prices.
True
False
26
Which of the following is an example of a good with inelastic supply?
fine art.
all of the answers are correct.
beach front property.
cruise ships.
27
The amount of a product a consumer is willing and able to buy is called
utility.
demand.
window shopping.
supply
28
The price of beef rises. The demand for hamburger buns will
increase.
stay the same.
decrease.
