Unit 2 Review: Supply, Demand, and Equilibrium

Question 1

If the price of mints drops from $.75 to $.50. What will happen to the supply of mints?

Accepted Answer

The quantity supplied will decrease on the curve (new dot)

Question 2

______ is the amount that companies are willing and able to sell at a certain price.

Accepted Answer

Supply

Question 3

Sierra Mist and 7Up are substitutes. If the 7Up goes on sale, the demand for Sierra mist will?

Accepted Answer

Decrease

Question 4

According to the law of supply, if a supplier wanted to sell surplus goods, what should they do

Accepted Answer

Lower Price of the Good

Question 5

An example of an inferior good is:

Accepted Answer

Store Brand Cola

Question 6

Which is not a question used to determine elasticity of demand?

Accepted Answer

How long does it take to make a good?

Question 7

You get fired from your job. What will happen to your demand for clothing?

Accepted Answer

Your entire demand curve will shift to the left (decrease)

Question 8

Who determines the market price of a good or service in a market economy?

Accepted Answer

Consumers and Producers

Question 9

What is happening to equilibrium price and quantity as the supply curve shifts?

Accepted Answer

Price Down, Quantity Up

Question 10

The point where quantity demanded and quantity supplied intersect is known as ______.

Accepted Answer

Money Maker, Equilibrium

Question 11

You make donuts, and you hired a new glazing staff. What factor decreases your supply?

Accepted Answer

Labor Productivity

Question 12

Which of these would be a complement of iPods?

Accepted Answer

Headphones

Question 13

What will not cause demand to shift?

Accepted Answer

New Technology

Question 14

When the price of potatoes goes up, the supply of McDonald’s French Fries will do what?

Accepted Answer

Decrease

Question 15

Demand is the amount of products that people are willing and able to ______ at a given price.

Accepted Answer

Buy

Question 16

What is the name of this table? What does it show?

Accepted Answer

Demand Schedule, Demand at Each Price

Question 17

How would market equilibrium shift, if the demand for a good increases? (Curve moves right)

Accepted Answer

Price increased, Quantity increased

Question 18

A normal good is a product that people continue to purchase when their _____ rises.

Accepted Answer

Income

Questions 18