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Economics Unit 2 Test Review (Supply and Demand) Flashcards | StudBud
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Economics Unit 2 Test Review (Supply and Demand)
Economics Unit 2 Test Review (Supply and Demand)
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1
An actress sets off a craze for wearing camo clothing among her fans. What det. of demand?
consumer taste
price of related goods: complements
consumer expectations
Price of related goods: substitutes
2
The appearance of a supply curve is
a vertical line
an upward slope, bottom left to top right
a downward slope, top left to bottom right
a horizontal line
3
At cost $15 per CD a storesupplies 50 CDs and 50 CDs are demanded by consumers. $15 represents?
priceceiling
equilibriumprice
pricefloor
disequilibriumprice
4
What are products that consumers demand less of when their incomes rise?
complements
inferior goods
substitutes
normal goods
5
Which of the following describes a demand curve?
a. It slopes downward from right to left
a. It slopes downward from left to right
a. It is a horizontal line
a. It is bow-shaped
6
When consumers demand more goods and services at every price, equilibrium price will
rise
fluctuate
stay the same
fall
7
Which government action is most likely to reduce supply of frosted, berry, corn puffs cereal?
A tax on imported sugar
Trucktolls are reduced.
Acorn farmers receive a subsidy
sugarcrop is leveled by a hurricane
8
According to the graph, at a price of $7
there would be a surplus of 40 units
the market would be equilibrium
there would be a shortage of 40 units
there would be a surplus of 20 units
9
A surplus of a particular good is often a signal for a consumer to
expect a lower quality good
seek bargain prices for that good
expect the prices of that good to rise
10
What term is defined as goods that consumers demand more of when their incomes rise?
normal goods
substitute goods
complementary goods
inferior goods
11
As sales of digital cameras increase, so do sales of photo printers. What det. of demand?
price of related goods: complements
consumer expectations
price of related goods: substitutes
consumer taste
12
factory closes, laying off 100's ofworkers, spending in the town falls. What det of demand?
substitutes
consumer expectation
consumertaste
income
13
When producers supply more, equilibrium price will...
stay the same
rise
fluctuate
fall
14
Which of the following would cause equilibriumprice to increase?
A manufacturer supplies enough jeans to satisfydemand.
A type of perfume goes out of style, decreasingdemand.
A farm expands, thereby increasing its supply ofcorn.
A typhoon sharply decreases the supply of bananas.
15
Car manufacturers who use robots to do certainjobs in assembly are increasing supply by
applying new technology
lowering input costs
increasing the number of producers
taking advantage of government regulation
16
Which of the following government regulations is most likely to help increase supply?
Worker safety on construction sites isstrengthened.
Factories that cause pollution are fined.
Highway speed for truck drivers is reduced.
Herbicides used to kill weeds intheir fields are banned.
17
If price is $15 then quantity supplied would be ...
200
700
500
400
18
According the graph equilibrium price and quantity are?
$7, 20
$3, 60
$5, 40
$7, 60
19
Buying next year’s winter clothes in Feb. to benefit from the end-of-season sales. What D.O.D?
consumer taste
market size
income
consumer expecatation
20
Skiers flock to a town in the Rockies in January,and restaurant business booms.Whatdet. demand?
market size
consumer taste
substitutes
income
21
Peanut butter and Jelly are what type of goods?
complements
substitutes
cool
yummy
22
Coke and Pepsi are what type of goods?
complements
substitutes
addicting
brown
23
Which statement shows consumer expectation affecting demand?
Jacob’s wages go up, so he buys an extra pair ofbball shoes
Joe buys 10 lbs. of coffee because crops arefailing in Kenya
price of fuel containing ethanol drops, sogas sales decrease
Mikayla buys a new skirt style that she saw in a magazine.
24
A shortage of a particular good is often a signal for a producer to
lower production of that good
raise the prices of that good
lower the prices of that good
25
When there is a shortage, producers raise pricesin an attempt to
raise the quantity demanded
lower the quantity supplied
separate the quantity supplied & demanded
equalize the quantity supplied & demanded
26
Suppliers often reduce prices because they
have a shortage of products to sell
want to decrease consumer demand
want to increase the product supply
have a surplus of products to sell
27
If a producer supplies 40 pizzas, marketequilibrium is reached when consumers demand
30 pizzas from this producer
40 pizzas from this producer
35 pizzas from this producer
20 pizzas from this producer
28
Lower prices generally....
discourage consumers from buying
motivate consumers to buy
motivate producers to enter a market
discourage producers from leaving a market
29
a company supplies 20 shirts, and 20 shirts are demanded by consumers. The company achieved?
marketsurplus
marketdisequilibrium
marketequilibrium
marketshortage
30
Equilibrium price would decrease if a
type of bracelet became popular, increasingdemand
hurricane destroyed the supply of coffee
farm supplied enough wheat to satisfy demand
type of shoe went out of style, decreasingdemand
31
at a price of $20...
the market would be in equilibrium
600 units would be bought and sold.
there would be no pressure for price to change
all of the above are true
32
Supply can be changed by
equilibrium
income
substitutes
input costs
33
On the graph, a movement from S to S1 could be caused by...
increase in income
an improvement in technology
a decrease in the price of a good
an increase in input prices
34
What is a market demand curve?
table: how much of a product a marketis willing/able to buy
Graph: how much of a product a marketis willing/able to buy
table:how much of a product a person is willing/able to buy
graph:how much of a product a person is willing/able to buy
35
Higher Prices Generally....
discourage producers from entering a market
motivate producers to enter a market
motivate consumers to buy
discourage consumers from seeking a substitute
36
In this market, equilibrium price and quantity would be
$25, 800
$25, 500
$15, 400
$20, 600
37
Many US consumers have switched to wirelessphones from traditional telephones.What det demand?
substitutes
market size
complements
income
38
On a market demand and supply graph, the point of market equilibrium always happens
at the center point of the graph, irrespectiveof the curves
at the point where the demand and supply curves intersect
at the lowest point of the supply curve
at the highest point on the demand curve
