Unit 2 Test Review

One (sometimes 2) companies own 75%+ of sales, unique product, controls the price, nearly impossible to enter

What happens to the demand of cream cheese if the price of bagels increases?

Externalities are

Example of Perfect Competition

If you have to pay to use something is that a private or public good

Example of Oligopoly

If the price of an item increases, the supply and demand lines do not change

If both supply and demand lines change, you can tell exactly where the equilibrium is

What is another term for an underground economy

How is Nikes supply affected when technology increases?

As the price fluctuates, consumers adjust their spending habits

Thousands of businesses, identical products, easy to enter, no price control

It is easy for a business to get started in a perfect competition industry

The intersection of the supply and demand line

Which of the following is inelastic?

How is Mr. Posey's demand affected if he wins the lottery

Demand line angles down while supply line angles up

As the price fluctuates, consumers DO NOT adjust their spending habits

Which of the following good are elastic

What is the most popular example of a price floor?

What is the point of a price ceiling

Example of Monopoly

Which market structure never needs to advertise

Thousands of businesses, similar but different products, moderately difficult to enter, little control over price

Price is the horizontal axis (y-axis) and Quantity is the vertical axis (x-axis)

How is Supply affected if the govt. imposes a tax on a producer

Price floors benefit consumers

Example of Monopolistic Competition

What is the most popular example of a price ceiling?

4-5 companies own majority of sales, difficult to enter, similar but different products, good amount of price control

What is the point of a price floor