Duplicate of GA Standards - Supply and Demand SSEMI2 and SSEMI3

Question 1

According to ____, the higher the price, the less that consumers are willing to buy.

Accepted Answer

Law of Demand

Question 2

The government establishes $3 as the highest possible price that can be charged for gasoline.

Accepted Answer

The government made a price ceiling.

Question 3

A higher change in price will lead to a change in the ____.

Accepted Answer

quantity supplied or demanded

Question 4

The red line below illustrates ___.

Accepted Answer

supply

Question 5

The point at which supply and demand cross in the picture below is known as ___.

Accepted Answer

equilibrium

Question 6

The reason a price floor creates a surplus is because ___ is supplied than demanded.

Accepted Answer

more

Question 7

What is the consequence of a price floor?

Accepted Answer

It creates a surplus of the products.

Question 8

The price of hamburgers goes down. This means that ___ hamburger buns will be bought.

Accepted Answer

more

Question 9

A product that has elastic supply would mean that a change in price ____.

Accepted Answer

would greatly affect the quantity supplied

Question 10

The Law of Supply says, the higher the price the ___ that producers are willing to supply.

Accepted Answer

more

Question 11

On a graph, a price ceiling is best represented by a line ____ the equilibrium point.

Accepted Answer

below

Question 12

The graph below illustrates which concept best?

Accepted Answer

supply

Question 13

A consequence of price ceilings is that they can create ___.

Accepted Answer

shortages

Question 14

The blue line represents?

Accepted Answer

demand

Question 15

CrunchyO's price rises higher than Cheerios (a substitute).

Accepted Answer

Demand for CrunchyOs will fall, shifting the curve left.

Question 16

Something special about market clearing price is that at the price everything will be sold and

Accepted Answer

no one will want any more

Question 17

If more people move into an area, this could cause a ___ of the demand curve.

Accepted Answer

right shift

Question 18

The price of baby formula rises. People still buy it. What kind of demand does formula have?

Accepted Answer

inelastic

Question 19

Who is involved in determining the demand of a product?

Accepted Answer

consumer

Question 20

The point at which supply and demand meet can be used to determine ____.

Accepted Answer

equilibrium price

Question 21

What two factors determine market clearing price?

Accepted Answer

producers and consumers

Question 22

In Harmony, ten stores close down. What impact does this have on supply?

Accepted Answer

decrease; left shift

Question 23

According to the Law of Demand, if prices decrease, consumers will ___.

Accepted Answer

buy more

Question 24

The picture below illustrates ___.

Accepted Answer

a price floor

Question 25

The lowest possible price that can be legally charged is called ___.

Accepted Answer

price floor

Question 26

The price of t-shirts rises. How will this affect demand?

Accepted Answer

none of these; it will change the quantity that is demanded

Question 27

Price floors on a graph will appear ___ the equilibrium price.

Accepted Answer

above

Duplicate of GA Standards - Supply and Demand SSEMI2 and SSEMI3

Questions 27

Duplicate of GA Standards - Supply and Demand SSEMI2 and SSEMI3

Questions 27