Which of these is most likely to happen to the demand for winter jackets when a blizzard hits?

the demand curve shifts to the right

What are inferior goods?

goods for which the demand falls when income rises

How is current demand for a good related to its future price?

if the price is expected to drop, current demand falls

Which of these would most likely increase the supply of grilled cheese sandwiches?

a decrease in the price of cheese

Which of these events would indicate movement along a supply curve for sandwiches?

subway drops their price from 7 dollars to 5 dollars

If a modest price increase has little or no effect on the demand for a product then

demand for the product is inelastic

What does it mean when the demand for a product is inelastic?

a price increase does not have significant impact on buying

According to the law of supply, what happens as price increases?

the quantity supplied increases

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Supply and Demand

20 termsStudBud Administration80 plays

Economics 4/5

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Questions 20

Answers

1
In the summer season, a sharp rise in the price of lemonade may lead to an increased demand for
glasses
lemons
sugar
iced tea
2
When the price of a good is too high for consumers, they look for
inflation
luxury items
inelastic demand
substitutes
3
All of the following are examples of complements EXCEPT
peanut butter and jelly
Pepsi and Coke
xbox and a game
phone and charger
4
Which of these is most likely to happen to the demand for winter jackets when a blizzard hits?
the demand curve shifts to the left
the demand curve shifts to the right
the demand curve stays the same
the demand curve becomes flatter
5
What are inferior goods?
goods for which the demand rises when income falls
goods for which the demand falls when income rises
goods that no one wants to buy
goods that are not well produced
6
How is current demand for a good related to its future price?
if the price is expected to drop, current demand falls
it's not
if the price is expected to rise, current demand falls
if the price is expected to drop, current demand rises
7
Which of these would most likely increase the supply of grilled cheese sandwiches?
an increase in the supply of cola
a decrease in the price of cheese
a transportation strike
a government excise tax
8
If sellers expect the price of their goods for sale to soon increase dramatically they
sell the goods now and reinvest
sell the goods now but try to get a higher price
store goods until price rices
store the goods indefinitely
9
Which of these events would indicate movement along a supply curve for sandwiches?
a new law requires subway to give away all leftovers
workers at subway go on strike
a new trade agreement enables subway to import foreign bread
subway drops their price from 7 dollars to 5 dollars
10
What factor has the greatest influence on elasticity and inelasticity of supply?
time
financing
labor
profit
11
If a modest price increase has little or no effect on the demand for a product then
demand for the product is inelastic
demand for the product in inverse
demand for the product is complementary
demand for the product is elastic
12
If price decreases from $6 to $2 and quantity demanded increases from 10 to 15, this product is
unitary elastic
elastic
inelastic
13
The supply curve for apple pies if bushels of apples and sugar decline in price would
decrease or shift to the right
increase or shift to the right
increase or shift to the left
decrease or shift to the left
14
Generally, the more substitutes there are for a good, the
less valuable it is
less price changes
more complements there are
more elastic the demand
15
What might cause a decrease in demand?
an increase in the price of a substitute
an increase in population
a decrease in the price of a complement
a decrease in income
16
The law of demand states that as quantity demanded decreases
wages decrease
price increases
quality decreases
production decreases
17
What does it mean when the demand for a product is inelastic?
there are very few satisfactory substitutes
a price increase does not have significant impact on buying
people will not buy any of the product when price goes up
customers are sensitive to the price
18
Alex receives a raise at work. His demand for an inferior good will
have no relation to his income
increase
decrease
stay the same
19
According to the law of supply, what happens as price increases?
the quantity supplied decreases
the supply curve shifts to the left
the supply curve shifts to the right
the quantity supplied increases
20
Which of the following goods would be likely to have a demand that is inelastic?
books
t-shirts
Coca-Cola
gasoline

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