What does a firm's supply schedule show?

how price changes affect supply for a market

Which typically happens as prices for a good or service rise?

more suppliers enter the market

How does elasticity of supply affect apple producers if the price of apples increases?

Inelastic - Firms cannot adjust price quickly enough to change

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Econ Check for Understanding 3

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Demand and Supply

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Questions 10

Answers

1
Many customers have switched from telephones to cell phones. What is affecting demand?
market size
substitutes
market availability
income
2
The Law of Demand states that when prices rise?
there is no change in demand
quantity demanded increases
there is a shortage
quantity demanded falls
3
What does a firm's supply schedule show?
elasticity of demand
how price changes affect supply for a market
the impact of the substitution effect
how price changes affect demand for an individual
4
Which typically happens as prices for a good or service rise?
more suppliers enter the market
demand becomes more elastic
consumers want to consume more of the good/service
suppliers leave the market
5
Which of these has no viable substitute?
a Mercedes
hot cheetos
filet mignon
gas
6
What is the table that lists the quantity of a good that people will buy at different prices?
market demand schedule
market supply schedule
market comparison
price chart
7
The law of supply declares which of the following?
supply increases as price falls
supply stays the same no matter how the price changes
supply falls as price increases
supply falls as price falls
8
How does elasticity of supply affect apple producers if the price of apples increases?
Elastic - Increased output in the short run
Inelastic - Firms cannot adjust price quickly enough to change
9
The price of a popular product rises from $25 to $40. What happens to demand?
it decreases
the change is not noticable
it increases
there is no change
10
When consumers replace relatively expensive products with a similar lower priced product?
demand effect
substitution effect
marginal effect
income effect

Econ Check for Understanding 3 Flashcards | StudBud