What are two examples of price ceilings?

rent control, price caps on gasoline

a good or service that is available

How is profit calculated?

Total Revenue- Total Costs= Profit

elasticity of demand:

How quickly demand changes in response to changes in price

A shortage exists when

there is more demand than supply

What are two examples of price floors?

agricultural subsidies, minimum wage laws

The law of supply states

As prices increase, supply increases

A surplus exists when:

there is more supply than demand

elasticity of supply:

a measure of the way quantity supplied reacts to a change in price.

studbud

Motu's Supply Review

20 termsStudBud Administration88 plays

Economics class #supplyanddemand

Flashcards20 cardsFPractice quizPHost liveL

Questions 20

Answers

1
Examples of elastic demand are all of the following except
restaurants
1st class plane tickets
medicine
sports cars
2
What are two examples of price ceilings?
rent control, price caps on gasoline
rent controls, tax on food price
substitute and complimentary goods
tax on rent price, food price control
3
The equilibrium price and quantity in the image would be...
P= $6, Q= 5
P= $5, Q=5
P=$5, Q=6
P = $5, Q= 4
4
What is supply?
water, land or labor
cost
a good or service that is available
profit
5
when a price minimum is set you have created a
price basement
price ceiling
price wall
price floor
6
How is profit calculated?
Cost+Profit=Revenue
Profit+Revenue=Cost
E= MC2
Total Revenue- Total Costs= Profit
7
when a price maximum is set you have created a
price floor
price roof
price attic
price ceiling
8
When the price of a resource changes, the cost of the good or service changes.
True
False
9
______________ is the amount consumers pay for a good or service.
profit
price
revenue
cost
10
elasticity of demand:
How far a person can make their money go
The more candy costs, the more you will buy
Both are true
How quickly demand changes in response to changes in price
11
A shortage exists when
demand is less than the elasticity
there is more supply than demand
demand and supply are equal
there is more demand than supply
12
What are two examples of price floors?
Rent controls, food price controls
none of the above
agricultural subsidies, minimum wage laws
Tax on agricultural products, minimum wages
13
The Law of Supply is
based on consumers behavior
A direct relationship
An inverse relationship
says that when price goes up, demand goes down
14
The law of supply states
As prices increase, supply falls
As prices increase, demand falls
As prices increase, demand increases
As prices increase, supply increases
15
What are examples of inelastic demand:
fancy restauruants
gasoline
sports cars
medicine
16
Equilibrium price is where/when:
Demand is greater than supply
Supply and Demand equals GDP
Supply equals demand
Supply is greater than demand
17
A surplus exists when:
there is more supply than demand
everyone is satisfied
there is more demand than supply
supply and demand are equal
18
Consumers want to buy at the highest price.
False
True
19
Producers want to sell at the highest price.
False
True
20
elasticity of supply:
a measure of the way quantity supplied reacts to a change in price.
amount a supplier is willing and able to supply at a certain price
chart that lists how much of a good a supplier will offer at dif prices
government payment that supports a business or market

Motu's Supply Review Flashcards | StudBud