According to this table, what # of bbags per hour would be the BEST level of prod. from a firm's point of view? Why?

10 beanbags per hour; profit is at its highest level

Why have agricultural products been the object of many price stabilization efforts?

their prices tend to fluctuate widely

Equilibrium is reached when what occurs?

quantity supplied equals quantity demanded

Based on the passage and what you know about demand, why might sales of baseball cards have dropped since 1987?

Baseball cards are complementary to baseball, popularity has declined..

A wildfire has put a major lumber producer out of business. How might an econ. show 1 consequence of this in a graph?

a supply curve that has shifted to the right

Use this diagram to identify which of the following would cause consumers to demand fewer slices of pizza.

an increase in the price of pizza slices

When is a firm’s rate of hiring likely to be highest?

during a phase of increasing marginal returns

Which of the following signals does the image below give to consumers?

You seem to be getting a good price on this product.

How are price ceilings and price floors similar?

Both bring about disequilibrium in the market.

Based on these graphs, which of the following BEST describes equilibrium?

the point at which the demand and supply both equal 200

Which of these do producers of an item hope to achieve when adopting new technologies?

a shift of the supply curve for that item to the right

At what point should the owners of a failing factory shut it down?

when revenue per hour is lower than operating cost per hour

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Topic 3 Demand, Supply, and Prices

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Demand/Supply

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Questions 20

Answers

1
Changes in quantity demanded and changes in price have a(n) _________ relationship.
indirect
neutral
positive
inverse
2
Which is the opposite of a surplus?
inelastic
elastic
equilibrium
shortage
3
On a demand curve, movement along the curve, as opposed to a shift in the entire curve, is a result of _________
a decrease in demand.
a change in price.
an increase in demand.
a change in demand.
4
Which product most likely has a demand that is inelastic?
green beans
tickets to a late season Lions game
a vital medicine
a vacation
5
According to this table, what # of bbags per hour would be the BEST level of prod. from a firm's point of view? Why?
12 beanbags per hour; marginal cost is higher than price
10 beanbags per hour; profit is at its highest level
8 beanbags per hour; total cost is under $100
4 beanbags per hour; marginal cost is only $5
6
Why have agricultural products been the object of many price stabilization efforts?
their prices are easily controllable
their prices are exempt from supply and demand
their prices tend to fluctuate widely
their prices would not otherwise reach equilibrium
7
Equilibrium is reached when what occurs?
quantity supplied equals quantity demanded
there is no change in the quantity supplied
price increases
prices are inelastic
8
Based on the passage and what you know about demand, why might sales of baseball cards have dropped since 1987?
Baseball cards are complementary to baseball, popularity has declined..
The price of baseball cards is falling.
Baseball cards are a substitute for the sport of baseball.
The price of baseball cards is rising.
9
A wildfire has put a major lumber producer out of business. How might an econ. show 1 consequence of this in a graph?
a supply curve that has shifted to the left
a demand curve that has shifted to the left
a demand curve that has shifted to the right
a supply curve that has shifted to the right
10
What do low prices signal buyers to do?
nothing
substitute
buy more
buy less
11
Use this diagram to identify which of the following would cause consumers to demand fewer slices of pizza.
an increase in the supply of pizza slices
a decrease in the price of pizza slices
a decrease in the supply of tacos
an increase in the price of pizza slices
12
When is a firm’s rate of hiring likely to be highest?
during a phase of decreasing marginal returns
during a phase of negative marginal returns
during a phase of uncertain marginal returns
during a phase of increasing marginal returns
13
Which of the following signals does the image below give to consumers?
Demand for this product is increasing.
You can earn high profits by producing more of this product.
You seem to be getting a good price on this product.
Think carefully; the price of this product is rising.
14
How are price ceilings and price floors similar?
Both are examples of government price supports.
Both involve the government's setting of a maximum price.
Both represent input changes that affect demand.
Both bring about disequilibrium in the market.
15
If the price of a product is above its equilibrium price, the result is a
shortage
black market
surplus
demand
16
Based on these graphs, which of the following BEST describes equilibrium?
the point at which the demand and supply both equal 200
the point at which the price equals $3.00
the point at which the quantity supplied equals 200 or more
the point at which the quantity supplied equals the price
17
Which of these industries has the least elastic supply curve?
the toy industry
the nuclear industry
the entertainment industry
the automobile industry
18
Which of these do producers of an item hope to achieve when adopting new technologies?
inelasticity of supply of that item
a repeal of subsidies for production of that item
a shift of the supply curve for that item to the right
a shift of the supply curve for that item to the left
19
At what point should the owners of a failing factory shut it down?
when profit per hour is lower than operating cost per hour
when revenue per hour and marginal cost per hour are equal
when revenue per hour is lower than operating cost per hour
when fixed cost per hour and marginal cost per hour are equal
20
Based on this graph, after adding the eighth worker, what is the beanbag company's owner MOST LIKELY going to do?
order more beans for making beanbags
order more cloth for making beanbags
hire more workers
reduce the workforce

Topic 3 Demand, Supply, and Prices Flashcards | StudBud