When quantity effect is dominant,

demand is elastic (total revenue and price move opposite)

diminishing marginal returns occur when

more workers increase output at a decreasing rate

is downward sloping(quantity increases when price decreases)

What is an example of supply elasticity determinant?

In the short-run , supply is inelastic.

A surplus occurs when producers

supply too much when the price is high.

is a table that shows the quantity supplied at each price.

What does the law of demand state?

As prices fall, demand will rise.

what is marginal cost?

The cost to make one more of a good.

Quantity demanded will increase when

Consumers think positively about a good or service.

The income effect states:

When income goes up, demand goes up for normal goods.

A state where supply and demand are balanced.

How does a complementary good affect demand?

When price rises, O.G. demand falls.

Civic engagement: Catch the I Can bug!

I know what I will focus on!, I still need to find an issue to research!

A shortage occurs when

quantity demanded exceeds quantity supplied.

How does population shift demand?

Increase in population will shift demand to the right.

How do I calculate profit?

Subtract total costs from total revenues.

How do you find equilibrium?

find the point where supply meets demand.

Why should producers study elasticity?

So they can determine prices for greatest revenue.

What is being depicted in this Legonomics video?

specialization, increasing marginal returns

Why does a supply curve slope upward to the right?

It illustrates the law of supply.

How does consumer expectation affect demand?

A price increase in the future will increase demand now.

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How Markets Work: Supply, Demand, Equilibrium

34 termsStudBud Administration118 plays

a review of unit 2 #economics content for the test. #supply&demand #equilibrium #elasticity #productioncosts

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Questions 34

Answers

1
When quantity effect is dominant,
demand is elastic (total revenue and price move opposite)
Demand is inelastic (Total revenue and price move same)
2
I studied for this exam (I will study for this exam) knowing I need this class to graduate.
true
false
3
diminishing marginal returns occur when
Specialization is at maximum benefit.
they are at optimal output rates.
The best workers are in ideal working conditions.
more workers increase output at a decreasing rate
4
A demand curve
Goes upward(quantity increases when price increases)
shifts left when demand increases.
Is a table representing quantities at specific prices.
is downward sloping(quantity increases when price decreases)
5
What is an example of supply elasticity determinant?
Difficulty to increase supply makes it elastic.
In the short-run , supply is inelastic.
In the long-run, supply is inelastic.
ease of increasing supply makes it inelastic.
6
A surplus occurs when producers
make less than what is demanded.
produce just enough.
supply too much when the price is high.
find equilibrium in the market.
7
What market disequilibrium is depicted here?
surplus
fall in price
price ceiling
shortage
8
A supply schedule...
is a table that shows the quantity supplied at each price.
Is a graph that shows how much will be made at which price.
is a table that shows the quantity demanded at each price.
Keeps suppliers on time.
9
What does the law of demand state?
She who demands gets to make the rules.
As prices fall, demand will rise.
As prices fall, so too will demand.
As prices rise, so too will demand.
10
The formula for finding total revenue is
Fixed Costs + Variable Costs
Price X Quantity
Price - Total Costs
Total Cost - Prior Total Cost
11
In the short run a business cannot easily change it’s quantity supplied so supply is inelastic.
False
True
12
what is marginal cost?
fixed costs only.
The not-so-important cost.
The market price of a good.
The cost to make one more of a good.
13
Quantity demanded will increase when
Consumers think positively about a good or service.
Prices increase.
The curve shifts to the left.
Consumers have a negative opinion of a good.
14
The income effect states:
Increase in income affects the type of music you buy.
When income goes up, demand goes down for normal goods.
Consumers buy more inferior goods when income increases.
When income goes up, demand goes up for normal goods.
15
What is equilibrium?
Where yoginis find peace. Namaste.
When there is excess supply.
A state where supply and demand are balanced.
When there is excess demand.
16
The government can decrease the supply of goods by placing an excise tax on them.
false
true
17
How does a complementary good affect demand?
It remains the same.
It has little effect.
When price falls, O.G. demand falls
When price rises, O.G. demand falls.
18
Civic engagement: Catch the I Can bug!
I know what I will focus on!
I still need to find an issue to research!
19
A shortage occurs when
The price goes through the roof.
quantity supplied exceeds quantity demanded.
There are too many cooks in the kitchen.
quantity demanded exceeds quantity supplied.
20
How does population shift demand?
Decrease in population will shift demand to the right.
Increase in population will shift demand to the right.
It will not shift demand.
Increase in population will shift demand to the left.
21
How do I calculate profit?
You can't.
Subtract total costs from total revenues.
Subtract the total cost from the cost prior.
Add the fixed costs to the variable costs.
22
How do you find equilibrium?
At any point along the demand curve.
find the point where supply meets demand.
Where the output is maximized.
In your heart.
23
An example of a fixed cost of production is...
Water usage.
Materials.
Labor.
Factory rent.
24
Why should producers study elasticity?
So they can only create inelastic goods.
Because they can control the factors that determine it.
So they can determine prices for greatest revenue.
They should not study elasticity.
25
What is being depicted in this Legonomics video?
specialization, diminishing marginal returns
specialization, increasing marginal returns
secularization, increasing demand
scarcity, decreasing supply
26
Why does a supply curve slope upward to the right?
It illustrates the law of supply.
It defies gravity.
It doesn't. It slopes downward.
it illustrates the law of demand.
27
Find the peak of labor efficiency in the table.
2 workers
4 workers
8 workers
3 workers
28
How does consumer expectation affect demand?
Demand isn't affected by consumer expectations.
A price decrease in the future will increase demand now.
Consumers cannot expect anything.
A price increase in the future will increase demand now.
29
Minimum wage is
Unnecessarily high.
A free market concept.
A price floor.
A price ceiling.
30
A substitute good for peanut butter is...
Nutella
Bread. Fluffy Wonderbread.
Margarine
jelly!
31
A complementary good to hotdogs:
Hamburgers
Jelly!
Ketchup
Coffee
32
A drop in costs will usually cause a drop in supply.
false
true
33
What is a substitute good?
A good that replaces another.
A good that supplements another good.
A good that goes with another
A good that is in high demand.
34
Demand for which good is elastic?
Those without substitutes.
Rare items.
Things we need.
Things we want.

How Markets Work: Supply, Demand, Equilibrium Flashcards | StudBud