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Unit 2 Review Flashcards | StudBud
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Unit 2 Review
Unit 2 Review
18 terms
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StudBud Administration
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Curves, #shifts, #pricefloors, #priceceilings-supply & demand
Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
Resource allocation in a market system is typically done by
First Come, first serve
Price
Authority
Lottery
2
Chips and salsa are _; this means that if chips increase in price, Qd of salsa will _
Substitutes; increase
Substitutes; decrease
Complements; increase
Complements; decrease
3
The Law of Supply basically says that as the price of a good increases...
the more suppliers there will be
consumers will buy less of that good
consumers will buy more of that good
producers will supply more of that good
4
What is the equilibrium price and quantity in the graph?
60000; 15
55000; 12
60000; 14
55000; 18
5
What is a price floor?
Equilibrium price
Governments intervene to push market prices up
Governments intervene and push market prices down.
Inflated price
6
What can you conclude if the equilibrium price of a good drops & equilibrium quantity decreases
Demand decreased
Supply decreased
Supply increased
Demand increased
7
When there's agreement on the quantity of Chipotle supplied with the Qd of Chipotle, there is _
equilibrium
a surplus
a shortage
peace on earth
8
The Law of Demand basically says that as the price of a good increases...
consumers will buy less of that good
the more suppliers there will be
producers will supply more of that good
consumers will buy more of that good
9
Price Floors create shortages
True
False
10
An increase in the price of tomatoes will cause a
decrease in the demand for cereal
increase in the demand for soup
increase in the supply of pizza
decrease in the supply of pizza
11
Little Caesars selling more pizza when they lower their prices is an example of ...
Law of Supply
Law of Demand
a price ceiling
a price floor
12
This graph represents a price ceiling
False
True
13
This has one seller & the highest barriers to entry w/the most control over prices
Monopoly
Monopolistic Competition
Oligopoly
Perfect Competition
14
The price of peanut butter increases so...
the supply curve for peanut butter will shift right
the supply curve for jelly will shift right
the demand curve for jelly will shift left
the demand curve for jelly will shift right
15
A decrease in the price of cereal will cause a
the equilibrium price for milk to remain the same
the demand curve for milk to shift to the right
the supply curve for milk to shift to the right
the demand curve for milk to shift to the left
16
An example of a price control would be...
A price ceiling
Both A and B are Correct
None of the above
A price Floor
17
This graph represents a price ceiling
True
False
18
If the government places a tax on high fructose corn syrup...
the demand curve for it will shift right
None of the above
the supply curve for it will shift left
the supply curve for it will shift right
