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Camilles Quiz on Supply and Demand Flashcards | StudBud
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Camilles Quiz on Supply and Demand
Camilles Quiz on Supply and Demand
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StudBud Administration
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Review of basic demand and supply concepts.
Flashcards
14 cards
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Practice quiz
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Questions
14
Answers
1
What usually occurs when new technology is applied to the production of a good?
the demand for the good increases
the government will intervene to maintain competition
the supply of the good decreases
the supply of the good increases
2
What happens when the supply is high and the demand is low?
The prices tend to increase
The prices tend to fall
Prices go crazy and have a party
You have the equilibrium
3
If a business expects the price of their goods to increase in the future, then it will..
decrease the current supply.
increase the current supply.
change what it produces.
seek a patent for its products.
4
According to the law of demand, if the price of a good increases, then
supply will increase.
quantity demanded will decrease.
demand will increase
quantity supplied will decrease
5
If the government wants to increase the amount of a good that is produced, it will
pass a law requiring the firms to produce the good.
apply an excise tax to the sale of the good.
give producers of the good a subsidy (cash gifts).
place a tariff on the import of the good.
6
When
demand is high
and
supply is low
, this often happens...
people do not buy the product
trading
price is raised
price is lowered
7
If you fancy a pancake and you also then buy maple syrup this is.....
substitute goods.
inferior goods.
normal goods.
complementary goods.
8
If your income increases and you buy less Pot Noodles, then Pot Noodles are...
normal goods.
complementary goods.
substitute goods.
inferior goods.
9
In supply and demand,
supply
means
the same as demand.
something you give people before they ask for it.
the amount of something that people want to sell.
the amount of money people want to spend.
10
If good X and good Y both satisfy the same need or want then they are..?
complementary goods.
inferior goods.
substitute goods.
normal goods.
11
How many firms are there in oligopoly?
One
Many
Many and freedom of entry into the industry is unrestricted
Few and freedom of entry into the industry is restricted
12
You expect the price of petrol to increase tomorrow, so fill your car up today. This is an example of..?
market size.
government regulation.
the income effect.
consumer expectations.
13
What is a monopoly?
A single company with all the control.
A group of companies with no control.
A really fun board game.
A single company with no control.
14
What is perfect competition?
When a few large businesses dominate the market
When all businesses sell the same thing
When one business controls the market
When businesses try to make their product unique
