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supply demand Flashcards | StudBud
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supply demand
supply demand
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Answers
1
When price is too low,
consumer demand will decrease.
producers will increase the supply.
a shortage of goods is the result.
the quality of goods is poor.
2
Which of the following raises the equilibrium price of wine?
an increase in the demand for wine
an increase in the quantity of wine demanded
a decrease in the demand for wine
an increase in the supply of wine
3
Which of the following is a
Demand Shifter
?
Changes in income
Natural disasters
Changes in technology
Taxes & subsidies
4
A shortage occurs
When demand is greater than supply
When supply and demand shifts occur
When supply and demand are equal
When supply is greater than demand
5
When quantity demanded equals quantity supplied, we are at _____.
Market equilibrium
Zero inflation
Zero economic growth
Market disequilibrium
6
When a person’s ability to buy goods and services changes with their purchasing power
Input Costs
Complementary Goods
Income
Substitute Goods
7
The Law of Supply says
As price goes up, quantity supplied goes up
Price & quantity supplied have nothing to do with each other
Supply and Demand are always constant
As price goes up, quantity supplied goes down
8
When demand is affected by the belief that a price of a good or service will change
Market Size
Consumer Expectations
Producer Expectations
Consumer Tastes
9
When prices are high,
there is a shortage.
there is an excess supply.
there is a recession on the way
there is an excess demand.
10
Example: When someone buys a slice of pizza instead of a burger because the pizza is cheaper
Alternatives
Complements
Substitutes
Frugality
11
When demand is affected by a good or service’s popularity
Number of Producers
Consumer Tastes
Market Size
Consumer Expectations
12
What two factors must be present for demand?
Consumers must complete surveys and have a credit card.
Consumers must have convenience and selection.
Consumers must be willing and able to buy
Demand is determined by advertising
13
Demand for nightclubs decreases. Hence, the equilibrium price __ & equilibrium quantity __
rises; increases
rises; decreases
falls; decreases
falls; increases
14
A surplus occurs
When demand is greater than supply
When supply and demand are equal
When supply and demand shifts occur
When supply is greater than demand
15
Which of the following is a
Supply Shifter
?
Unemployment rate rate drops to 1.5% (currently 7%)
Price of related goods goes down.
Freezing temperatures in Florida ruins the orange harvest
Celebrity endorsements of products.
16
Flour prices used to produce bagels increases. equilibrium price __ & equilibrium quantity __
rises; decreases
falls; increases
falls; decreases
rises; increases
17
Which of the following lower the equilibrium price of a canoe?
an increase in the supply of canoes
an increase in the demand for canoes
an increase in the quantity of canoes supplied
a decrease in the supply of canoes
18
If leather shoes producers believe the price of shoes will increase next month, today
the equilibrium quantity of leather shoes will increase
the supply curve for leather shoes will shift right
the supply curve for leather shoes will shift left
the equilibrium price of leather shoes will fall
19
This is government support or money to encourage an economic activity (and increase supply
Tax Return
Subsidies
Excise Taxes
Tariffs
20
The Law of Demand says:
As price goes up, quantity demanded goes down
Price & quantity demanded are not connected at all
As price goes up, quantity demanded goes up.
As price goes up, quantity demanded stays the same
