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The Market - Supply & Demand Flashcards | StudBud
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The Market - Supply & Demand
Which of the following will cause demand to decrease?
A good is elastic for supply if
The Market - Supply & Demand
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Answers
1
A good is elastic for supply if
the good is manufactured
there is full capacity
it is in the short run
the next unit is expensive to produce
2
Which of the following will cause demand to decrease?
a cheaper complement
a cheaper substitute
more buyers
more popularity
3
Supply would decrease if
excise taxes were cut
productivity increased
more sellers entered the market
regulations were placed on production
4
At the price of $8 a __________ would exist
surplus
shortage
5
The graph represents
inelastic supply
elastic supply
perfectly inelastic supply
perfectly elastic supply
6
At the price of $3 a __________ would be in place
price ceiling
price floor
7
The graph represents
an increase in demand
a decrease in the quantity demanded
an increase in the quantity demanded
a decrease in demand
8
Supply would increase if
future prices were expected to increase
input costs such as wages increased
government subsidies were taken away
more sellers entered the market
9
To demand is to __________ a good.
want
be willing and able to purchase
need
own
10
Which of the following will cause demand to increase?
lower future prices
lower income for an inferior good
cheaper substitute
higher priced complement
11
Price floors . . .
cause a need for rationing
are used when a disaster strikes
cause surpluses
are intended to keep prices low
12
Price ceilings are used to
discourage consumption
keep prices above equilibrium
keep prices below equilibrium
13
A good is inelastic for demand if
it is in the short run
the good is narrowly defined
the good is a luxury
the good makes up a large portion of your spending
14
The graph represents
perfectly inelastic demand
elastic demand
inelastic demand
perfectly elastic demand
15
Technology improvements in the production process improve
sales
productivity
efficiency
revenue
16
The graph represents
an increase in the quantity demanded
a decrease in demand
a decrease in the quantity demanded
an increase in demand
17
The graph represents
an increase in supply
a decrease in supply
a decrease in the quantity supplied
an increase in the quantity supplied
18
According to the law of demand, if prices fall
demand rises.
the quantity demanded rises.
demand falls.
the quantity demanded falls.
19
According to the law of supply, if price rises
the quantity supplied falls
the supply rises
the quantity supplied rises
the supply falls
20
A good is elastic for demand if
the good is broadly defined
few substitutes are available
the good is a necessity
you have to pay the bill yourself
21
Equilibrium quantity is
100
40
60
70
22
Equilibrium price is
$1
$2
$4
$3
23
Demand is elastic if consumers
are unable to respond to a price change
really like a good
are able to respond to a price change
are willing and able to purchase a good
24
The change represented by the graph was caused by
more productivity
greater popularity
more sellers
fewer buyers
25
The law of demand is supported by all of the following except
diminishing marginal utility.
the substitution effect.
the income effect.
the popularity effect.
