a government payment to support a business or market

Which of the following influences people's buying habits and varies moving along a demand curve?

price of the good in that market

The Law of Demand states

the lower the price the more consumers will buy

Which of the following describes the substitution effect?

As the price rises, people will substitute other products

A market supply curve shows

the quantity supplied by producers at different prices

For economists, the Latin phrase ceteris paribus means

all other things remain constant

According to the Law of Supply,

the higher the price the larger the quantity produced

A substitute is a good

that can be used in place of another good

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Supply and Demand: ECONOMICS

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Supply and Demand review

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Questions 16

Answers

1
Which of the following is not a determinant of demand?
seasonal
inelastic
income
taste and preference
2
What is a subsidy?
illustrated market supply curve
a form of government regulation
a government payment to support a business or market
a tax on production or sale of a good
3
Which of the following influences people's buying habits and varies moving along a demand curve?
income
price of the good in that market
increase in supply
preferences
4
In a market system, prices are determined by
total market demand
corporate officials
supply and demand
cost of inputs
5
At the price of $2.00 per chocolate bars, will there be a shortage or a surplus of candy?
surplus
shortage
6
Which of the following is an example of a good with inelastic demand?
luxury car
laptop computer
life-saving machine
50 inch smart television
7
Which of the following is NOT an example of a complimentary good?
tennis racket and tennis balls
skis and boots
peanut butter and jelly
calculator and cell phone
8
The Law of Demand states
the higher the price the more consumers are willing to buy
the lower the price the more consumers will subsitute
the lower the price the more consumers will buy
people will buy goods in summer only
9
Which of the following describes the substitution effect?
As demand falls people will find substitute goods
As the price rises, people will substitute other products
As the price falls, people will substitute other products
As demand rises, people will use subsitutes
10
A market supply curve shows
how prices affect the cost or raw materials
supply for any set of conditions
hoe the supply of goods is kept in balance
the quantity supplied by producers at different prices
11
If you buy despite an increase in price
you just won PowerBalls billions
Your demand is inelastic
Your demand is normal
you are not paying attention
12
The Law of Demand states that the higher the price the less consumers will demand?
False
True
13
As indicated in this graph, the equilibrium price of chocolate bars is
.40
1.60
1.20
.80
14
For economists, the Latin phrase ceteris paribus means
certain concepts are parallel
all other things remain constant
out of many, one
seize the day
15
According to the Law of Supply,
the higher the price the larger the quantity produced
if the price of a good falls new firms may enter the market
if the price of a good rises some firms will produce less
the lower the price the larger the quantity consumed
16
A substitute is a good
of a lower quality that another good
of a higher quality than another good
that can be used in place of another good

Supply and Demand: ECONOMICS Flashcards | StudBud