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Module 2 - Demand and Supply Flashcards | StudBud
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Module 2 - Demand and Supply
Module 2 - Demand and Supply
30 terms
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StudBud Administration
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Review for Supply and Demand Test
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
A price that is higher than equilibrium will cause a __________ in the market.
shortage
surplus
2
To have demand for a product, a consumer needs:
Willingness, desire, and ability
Desire, ability, and money
Time, motive, and opportunity
A change in trends or buyer wants
3
Why is this girl enjoying her ice-cream cone way more than she will enjoy her third ice-cream cone?
She is lactose intolerant
Law of diminishing marginal utility
Law of supply
Law of demand
4
Which of these is an example of the law of demand?
Nicole Kidman raises the price of guacamole because of avocado shortages
Nicole Kidman buys whatever she wants no matter the price
Nicole Kidman produces more muffins thanks to special new muffin oven
A store lowers its price on Nicole Kidmans so people will buy more of them
5
If we learn that eating bacon will turn your fingers into sausages, which graph represents the bacon market?
A
B
C
D
6
What is it called when the government mandates the highest price for something (like rent control)?
Price floor
Price ceiling
7
Which of the following does not determine whether the quantity demanded of a good is elastic or inelastic (SILT)?
If it is a high percentage of income
Whether it is a luxury or necessity
If there is an improvement in technology
The availability of substitutes
8
This change in the market causes equilibrium prices to:
Go down
Go up
9
Why are prices considered neutral?
They don't favor buyers or sellers
They didn't fight in World War II
They have a ph of 7
They are 100% completely fair with no problems at all
10
Which of these is an example of a price floor?
A rebate if you buy an electric car
Subsidies for farmers
Minimum wage
Taxes on cigarettes
11
What is it called in a market when buyers buy exactly the same amount as sellers want to sell?
Surplus
Equilibrium
Love
Shortage
12
Based on the graph below, an increase in the price will cause what change?
An increase in quantity supplied
An increase in quantity demanded
An increase in supply
A increase in demand
13
If the quantity demanded is 200 and the quantity supplied is 50, what do you have?
150 surplus
150 shortage
Maths
50 shortage
14
A change in production costs shifts:
The supply curve
The demand curve
15
Which of these is an example of the law of supply?
Perdue Chicken opens a new factory with new technology
A restaurant purchases a new oven because the old oven broke
A farmer buys more land thanks to government subsidies
A bakery produces more baked goods at higher prices
16
If the quantity demanded for a good or service does NOT respond to changes in price, the quantity demanded is:
Inelastic
Elastic
17
Which graph shows a change in the shoe market because of government stimulus checks ?
C
B
A
D
18
If there is a surplus, quantity demanded is ____________ than quantity supplied.
higher
lower
19
What will suppliers do when the price of a good or service falls?
Provide more
Provide less
20
If there are no good substitutes for a good or service (like gasoline), then the quantity demanded is what?
Elastic
Inelastic
21
If tortilla prices decrease, which graph shows the change in the burrito market?
D
B
A
C
22
Price will __________ when the demand shifts from D1 to D2.
go down
go up
23
If the government removes its ethanol subsidies to corn farmers, then corn farmers will:
Grow more ethanol corn
Grow less ethanol corn
24
The following products would be considered complements (and not substitutes):
Pepsi and Coke
A burger and fries
Fries and tots
Peanut butter and petroleum jelly
25
What is it called when prices fall, so we have greater purchasing power with the same amount of money?
Such a wrong answer
Not this one
Don't pick me
Income effect
26
High administrative cost, lack of motivation, and fairness are problems with what?
High School
Pricing
Rationing
Competition
27
What would cause consumers to buy less and sellers to supply more?
Prices rise
Prices fall
28
If the price of Emma Stones goes up, what will happen to the demand for Jane Levys?
It will increase because they are substitutes.
It will decrease because they are complements.
It depends on why the price of Emma Stones went up.
I don't know. Ask Emma Stone.
29
What might cause this change in the market for green beans?
People find out green beans cause cancer
Kim Kardashian reveals that she got her booty by eating green beans
New technology helps grow more green beans
A drought destroys much of the green bean crop
30
Which of the following would happen if there were an increase in the price of dog food?
A decrease in the quantity supplied of dog food
An increase in the quantity demanded for dog food
Dogs and cats would start living together as friends
An increase in the quantity supplied of dog food
