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Supply and Demand Quiz
Supply and Demand Quiz
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Review for Supply and Demand Test
Flashcards
31 cards
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Questions
31
Answers
1
If a good is a need even if the price changes a little or a lot then the demand is? You are still buying it!!
at equilibrium
inelastic
elastic
unit elastic
2
Price of peanut butter decreases. What happens in the market for jelly?
Decrease in Quantity Demand
Increase in Quantity Demand
Increase in Demand
Decrease in Demand
3
Which graph shows a change in demand for shoes because of a rise in people's income?
C
A
D
B
4
Example of the law of supply
Perdue Chicken opens a new factory
A restaurant purchases a new oven
A pizzeria increases slices they make as sale price increases
A citrus farmer doubles his land
5
An example of the the minimum legal price you are allowed to charge such as a price floor is..
minimum wage
rent control
shortages
cap and trade
6
The cost or availability of inputs (resources) shifts
Demand Curve
Quantity Supplied Line
Supply Curve
Quantity Demanded Line
7
If the quantity demanded is 200 and the quantity supplied is 50 how much is the shortage?
200
150
250
50
8
If I redo my house and want a TV in every room I don't want to pay full price for all of them. This is...
Voluntary Exchange
Law of Supply
Law of Demand
Law of Diminishing Marginal Utility
9
The maximum legal price you are allowed able to charge is called
price floor
price ceiling
equlibrium
shortage
10
What is it called in a market when buyers buy exactly the same amount as sellers want to sell. QD=QS
surplus
equilibrium
shortage
disequilibrium
11
Based on the profit motive if the sale price of a good falls suppliers will produce?
Less
More
Old Products
The Same
12
What event might cause this shift?
Consumers read an article praising the product
Weather damages food crops
More firms (sellers) enter the market
New technology improves production
13
An increase in the sale price will cause what change?
A increase in supply
An increase in quantity supplied
An increase in Demand
A decrease in quantity supplied
14
If the price of pepsi goes up, what will happen to the demand for coke?
it will stay the same
it will increase
who knows coke tastes horrible anyway
it will decrease
15
The amount of goods
"producers"
are willing to produce at a certain price is the definition of
Market
Product
Demand
Supply
16
If the price of tortillas decreases, which graph shows the change in the burrito market?
C
A
B
D
17
Expectation of future
profits (not price)
shifts
Supply ROTTEN
Demand TRIBE
Quantity Supplied
Quantity Demanded
18
If there is a surplus, Quantity Demanded is ____________ than quantity supplied
the same
lower
it depends
higher
19
Which of the following is
NOT
a determinant of Price Elasticity of Demand? S.I.L.T.
Luxury Item
Income would be affected
Resources
Availability of substitutes
20
If demand shifts to the left prices will __________ and quantities will _____________
go down, go up
go up, go down
go down, go down
go up, go up
21
A price that is HIGHER than equilibrium will cause a __________ in the market.
demand to be greater than supply
shortage
equilibrium
surplus
22
Look at the Graph. If this is the Market for Green Beans what might cause this to happen.
People find out green beans cause cancer
New Technology helps grow more green beans
Patrick Mahomes does a commercial for green giant
A drought destroys much of the green bean crop
23
The following products would be considered
Complements
not Substitutes?
hamburgers and chicken sandwiches
french fries and tater tots
Pepsi and Coke
hot dogs and hot dog buns
24
This change in the market causes Equilibrium Prices to _________ and Quantities to _________
up, up
down, down
down, up
up, down
25
The relationship between price and demand is
Inversely (Opposite) related
Directly related
Consumers will buy more if the price goes up
Suppliers don't ever respond to demanders
26
A problem with rationing is fairness and ...
Lots of economic choices
everything is inelastic
High administrative (government) Cost
prices are neutral
27
If the government
decreases
its subsidies to corn farmers (suppliers) the cost of producing corn will ____ for them?
Stay the Same
Decrease
Be $0
Increase
28
When prices fall and consumers feel like they have more $ even though they don't it's called?
Rationing Effect
Inferior Goods
Compliment Effect
Income Effect
29
To have Demand a consumer needs ability, willingness, and ___ to pay for the product?
Thanksgiving
Competition
Desire
Trade-Off
30
Advantages of pricing are that it has lots of economic choice and
there are high administrative costs
prices are neutral
31
If the price of colored pencils decreases, which graph shows change in the market for markers?
C
D
B
A
