What leads to excess demand?

More people want a good than producers can supply

Manhattan real estate is very expensive. What info do these prices convey to consumers?

there is a shortage of real estate in Manhattan

In 2005 2 hurricanes hit the Gulf Coast & disrupted the supply of oil--the impact on gas prices

gas prices fluctuated while supply was unpredictable

Which of the following is an example of a supply shifter?

an increase in the cost of inputs

What might cause excess supply of cupcakes at the bakery?

the price may be higher than people are willing to pay

A draught reduces the blueberry harvest. How would this affect equilibrium price and quantity?

price increases as the supply decreases

Which statement is true?

prices allocate scarce resources efficiently

govt. set minimum price required for a good

What is likely to happen next week if a vendor sells his entire stock in the first hour today?

he will raise the price of melons

Research revealed blueberries as a powerful brain food--the change in the demand curve would be

demand curve would shift to the right

One example of when the government might impose rationing is

when essential but high-demand goods are in short supply

How is the market-clearing price determined?

it is reached through trial and error

If home prices are increasing, what is a logical result of this price increase?

construction firms begin building more homes

Which statement about demand and supply is true?

The impact of D and S shifts is not always immediately clear

studbud

The Demand and Supply Model

20 termsStudBud Administration82 plays

Imported from external platform

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
What leads to excess demand?
sellers decrease the prices of their goods
Prices are more than consumers are willing to pay
More people want a good than producers can supply
the supply is equal to the amount consumers want
2
Manhattan real estate is very expensive. What info do these prices convey to consumers?
Manhattan real estate is luxurious
there is a shortage of real estate in Manhattan
everyone in Manhattan is wealthy
Manhattan hopes to attract professionals
3
In 2005 2 hurricanes hit the Gulf Coast & disrupted the supply of oil--the impact on gas prices
gas prices plummeted as consumer demand for gas dropped
gas prices remained the same
gas prices fluctuated while supply was unpredictable
gas prices stayed artificially high due to price controls
4
Which of the following is an example of a supply shifter?
a spike in the population
an increase in the cost of inputs
changing consumer tastes
rising unemployment
5
What might cause excess supply of cupcakes at the bakery?
the cost of inputs increased rapidly
all of the answers
the price may be higher than people are willing to pay
the bakery dropped their prices
6
If a vendor can't keep up with the demand for their good, what can he do to solve the problem?
hire more staff to be make the good more quickly
buy more inputs and make more
raise the price of the good
all of the these options
7
A draught reduces the blueberry harvest. How would this affect equilibrium price and quantity?
price decreases as the supply decreases
price decreases as the supply increases
price increases as the supply increases
price increases as the supply decreases
8
Which statement is true?
prices convey info to producers but not to consumers
prices allocate scarce goods to those who want them least
prices allocate scarce resources efficiently
prices respond very little to changing market conditions
9
Why is it often difficult for the government to end price controls?
politicians are reluctant to go against voters who want them
people pressure government to intervene
price controls further the goal of economic equity
all of the above
10
A price floor is
amount it costs to produce a good without making a profit
an illegal market in which goods are traded at higher prices
the price at which D matches the S of the good or service
govt. set minimum price required for a good
11
What happens when the price of the good bring Qd and Qs into balance?
price controls
rationing
market equilibrium
disequilibrium
12
How do consumers experience excess demand?
as an equilibrium
as a shortage
as a surplus
as a discount
13
What is likely to happen next week if a vendor sells his entire stock in the first hour today?
he will raise the price of melons
he will stop selling melons and switch to other produce
he will bring fewer melons next time
he will sell melons at a lower price
14
Research revealed blueberries as a powerful brain food--the change in the demand curve would be
demand would shift downware
demand curve would shift to the left
demand curve would shift upward
demand curve would shift to the right
15
Markets are governed by
the law of supply and demand
disequilibrium
excess demand
price controls
16
One example of when the government might impose rationing is
when essential but high-demand goods are in short supply
when farmers produce more grains than people demand
when it establishes a minimum wage for labor
when it hopes to stimulate the economy
17
How is the market-clearing price determined?
it is calculated by economic analysts
it is fixed by each manufacturer
it is reached through trial and error
it is set by a government commission
18
If home prices are increasing, what is a logical result of this price increase?
construction firms begin building more homes
all of the above
builders decide to renovate existing houses
architectural firms begin laying off staff members
19
Which statement about demand and supply is true?
if D and S both increase, we know how Eqm will change
economist can immediately predict effects of D and S shifts
demand shifts regularly while supply responds periodically
The impact of D and S shifts is not always immediately clear
20
Rent control is an example of
a price ceiling
decreased demand
the black market
excess supply

The Demand and Supply Model Flashcards | StudBud