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Unit 2 Exam
Unit 2 Exam
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StudBud Administration
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Economic Review over Supply, Demand, Price, and Market structures
Flashcards
26 cards
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Practice quiz
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Questions
26
Answers
1
Which of the following is a non-price determinant of demand?
Consumer taste
Subsidy
Price ceiling
Worker productivity
2
Which of these describes an effect of increased government regulation on producers?
shifts the curve to the left
Shifts the supply curve right
encourages the creation of new products
prompts the to increase inputs
3
When price of a good or service is higher than the equilibrium price
shortage takes place
quantity supplied equals quantity demanded
sellers desire to produce more
consumers want to purchase more
4
What is the highest legal price that can be charged for a product called?
Price ceiling
Equilibrium Price
Price Floor
Price exchange
5
A change in quantity demanded is represented by_
Movement along the demand curve
shift in the demand curve
substitutes
compliments
6
Which of the following would most likely cause the shift shown in the graph? (for cell phone)
new model of popular phone released
companies made large profit that year
the cost for parts has increased
salesmen worked overtime
7
What is the lowest legal price that can be charged for a product called?
Price equilibrium
Price floor
Price ceiling
Price exchange
8
A demand schedule is best described as____
Incentive
Graph
time line
Data
9
Why is the demand curve downward sloping?
reflects desire, ability, and willingness to consume
Quantity of Demand increases as price decreases
natural elasticity of the market
shows the how increasing incentives changes demand
10
Identify the equilibrium price
160
60
80
40
11
Using the graph, what is the equilibrium price of pizza?
1.50
.50
1.00
2.00
12
Which of the following statements is supported by this schedule for mangos?
as price decreases then demand increases
price will remain the same as demand increases
as price decreases then demand decreases
Demand will decrease as price decreases
13
Which of the following conditions could explain the shift in the demand curve shown?
eating cooked tomatoes increased because of health benefits
the cooked tomatoes are spoiled
people are eating more cooked tomatoes
Farmers harvested a bumper (perfect) crop of tomatoes
14
Veronica love Pepsi but the price has increased by $10. What happens to supply and demand from her perspective
Supply will stay the same and demand will increase
supply will decrease and demand will increase
Her quantity of demand will decrease
Supply will increase and demand will stay the same
15
On a demand curve, movement along the curve is a result of
Change in Demand
Decrease in Demand
Increase in Demand
Change in Price
16
Which would an economist consider a likely substitute for coffee?
Water
Chicken
Tea
Donuts
17
On a supply and demand graph, supply will decrease and shift to the left if__
taxes decline
input cost decreases
less competitors
fewer government regulations in place
18
One Seller, Complete barriers to market entry, no product differentiation? What is it?
Monopolistic competition
Oligopoly
Monopoly
Pure Competition
19
What is the lowest legal price that can be charged for a product called?
Price exchange
Price ceiling
Price Floor
Equilibrium Price
20
According to the Law of Supply, which of these would happen to an item as its price rose?
Producers will create less
producers will increase prices even more
Producers will create more
producers will lower prices on similar products
21
In a supply and demand graph, what likely happens if the cost of inputs decreases?
Demand curve shifts right
Demand curve shifts left
Supply curve shifts right
Supply curve shifts left
22
Why is a supply curve upward sloping?
As price goes up so does quantity supplied
reflects taste of consumers
reflect desire, willingness, and ability to consume
the natural inelasticity of the market
23
True or false, when demand is greater than supply the market has a shortage?
False
True
24
All of the following are characteristics of an oligopoly except-
Total price control
high market entry barriers
few sellers
some product differentiation
25
If the government artificially limits the price to, at most will be $1, then what is the result
surplus (surplus of supply) of 400 units
Consumer surplus of $1.00
shortage (surplus of demand) of 400 units
Equilibrium is reached
26
All of the following are characteristics of perfect competition except
buyers and sellers easily enter the market
Large number of informed buyers/sellers
barriers to buyers and sellers to enter the market
no buyer or seller large enough to influence price
