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Demand, Supply, & Markets
Demand, Supply, & Markets
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Demand, Supply, & Markets
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37 cards
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Answers
1
Because a large price increase has little or no effect, the demand for the product is
unit elastic
inelastic
elastic
complementary
2
the law of demand shows this type of relationship between price & demand
rocky
inverse
direct
unequal
3
when producers offer fewer products for sale at each and every price
they expect subsidies
the supply curve has shifted to the left
the price per unit has decreased
the supply curve has shifted to the right
4
An increase in the price of milk causes a decrease in the demand for cereal. The 2 products are
unrelated
demand elastic
substitutes
complementary
5
the federal or state minimum wage is an example of
price limitation
none of the above
price ceiling
price floor
6
why are many businesses engaging in e-commerce?
operating costs never increase
fixed costs are minimal resulting in low overhead
variable costs can be eliminated
subsidies are available
7
what is the sum of all individual demand curves
equilibrium point
market demand curve
total demand curve
supply demand curve
8
the 3 stages of production IN ORDER from most productive to least are
positive returns, negative returns, & declining returns
increasing returns, diminishing returns, & negative returns
negative returns, diminshing returns, & positive returns
diminishing returns, increasing returns, & economic returns
9
the theory of production deals with the relationship between factors of production &
the output of goods & services
cost of raw materials
cost of marginal returns
fixed costs
10
what relates changes in the quantity demanded to changes in prices?
supply elasticity
diminishing returns
income effect
demand elasticity
11
in a market economy, high price is a signal for
producers to supply more & consumers to buy more
producers to supply less & consumers to buy less
producers to supply more & consumers to buy less
government to intervene to protect consumers
12
when employees are getting in each other's way, the firm is operating in
peak performance
in stage 1 of production
in stage 3 of production
in stage 2 of production
13
at what price does the supply meet the demand, leaving no shortage or surplus?
market price
sale price
equilibrium price
unit price
14
Demand for a product increases/decreases the same proportion as price changes: that product is
inelastic
unit elastic
complementary
elastic
15
Advertising, fashion trends, and new product introductions serve to:
create consumer demand
minimize the income effect
increase income effectiveness
create consumer needs
16
this will make you feel wealthier if the price of entertainment drops
the luxury tax
Beibernomics
Reaganomics
the income effect
17
period of production where producers can adjust all quantities of their resources
long run
Black Friday
Christmas Eve
short run
18
which of the following is NOT a reason why prices are so effective at performing allocation
competitive markets find their own prices without trouble
prices remain relatively stable through unexpected events
prices are something you have known for your entire life
prices favor neither the producer nor the consumer
19
a legal cap or max price that can be charged for a product is called a
price ceiling
none of the above
price floor
price limitation
20
output will change as only 1 variable is changed (usually labor) in what period of production
short run
long run
recession
depression
21
at a given price, a surplus occurs when
the quantity supplied is greater than the demand
the quantity supplied is less than the demand
the quantity demanded is more than supplied
the quantity demanded is the same as supplied
22
All of the following can change the market supply curve EXCEPT
the number of sellers offering the product
cost of labor
expectations that prices are about to increase
change in the demand for the product
23
gov't initiative to spark economic activity or influence behavior (usually done in tax breaks)
allocation
subsidy
substitute
representation taxation
24
when demand decreases, the curve shifts to the
center
left
right
middle
25
Consumer's willingness to replace a costly item with a less costly item is an example of:
demand elasticity
the income effect
complements
the substitution effect
26
a partial refund of the original price is called a
price ceiling
price floor
coupon
rebate
27
can purchase be delayed, are there substitutes, & is purchase expensive are questions that
determine equilibrium
determine sales price
determine elasticity
determine market price
28
total cost is the sum of the
fixed costs and overhead
fixed and variable costs
fixed and marginal costs
all variable costs
29
all of the following are characteristics of allocation by rationing EXCEPT
efficiency
diminished incentive for workers
high administrative cost
fair distribution of goods
30
when a customer's need for a product is not urgent, demand tends to be
elastic
unit elastic
inelastic
complementary
31
An increase in the $ of cameras results in a decrease in the demand for film because they are
substitutes
complementary
demand elastic
unrelated
32
the theory of competitive pricing is
demonstrating the need for price floors & ceilings
an imperfect modelof market performance
effective when large price swings occur
when items are similarly priced at different nearby stores
33
For most products & services, increased price results in:
reduced demand for substitutes
increased demand for compliments
demand for fewer products
demand for more products
34
the level of profit-maximizing output is reached when marginal cost is
double marginal revenue
less than marginal value
equal to marginal value
one-half of marginal revenue
35
if supply increases, the supply curve will shift to the
center
left
right
middle
36
rent payments and property taxes would be counted as
variable costs
total costs
marginal costs
fixed costs
37
The supply of a product normally decreases if:
more producers enter the market
cost of inputs goes down
the price of a product increases
taxes on the product increase
