If Demand is Price Elastic, then:

a fall in price will raise total revenue.

If price goes up, Quantity supplied goes up

All are determinants of Demand Elasticity EXCEPT:

Does the government subsidize this item?

Organizers willing to take a risk

The Price Elasticity of Demand is:

The ratio of change in Quantity Demanded to Change in price

A Complementary good is:

A good that enhances the value of another good

If Price goes down, Quantity Demanded goes up

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U2: Supply and Demand Review

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Supply and Demand Review

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Questions 27

Answers

1
The extra money a business receives from the production and sale of one extra unit of output
Marginal Profit
Marginal Subsidies
Marginal Revenue
Marginal Cost
2
If price goes up and revenue goes up:
Inelastic
Elastic
Unit Elastic
All of the Above
3
The extra output created by adding one more unit of variable input
Marginal Analysis
Marginal Revenue
Marginal Cost
Marginal Product
4
If Demand is Price Elastic, then:
a rise in price won't have any effect on total revenues.
a rise in price will raise total revenue.
a fall in price will raise total revenue.
a fall in price will lower the quantity demanded.
5
This figure shows a _____ Demand Curve
Quazilastic
Unit Elastic
Elastic
Inelastic
6
Law of Supply:
If price goes down, Quantity Supplied goes up
If Price goes up Quantity Supplied goes down
If price goes up, Quantity supplied goes up
If Price stays constant, Revenue goes up
7
All are determinants of Demand Elasticity EXCEPT:
Are adequate substitutes available?
Can the purchase be delayed?
Does the purchase use a large amount of income?
Does the government subsidize this item?
8
Known as the "Purgatory" between Elastic and Inelastic
Unit Elastic
Zero Elastic
Paralastic
Even Elastic
9
If an item has many substitutes and is not necessary for life, its demand is often:
Positive Inelastic
Elastic
Inelastic
Unit Elastic
10
All are factors of production EXCEPT:
Government
Capital
Land
Labor
11
All of the following are examples of Capital EXCEPT:
Assembly Line
Welding Torch
Iron Ore
Computers
12
When each worker added decreases the productivity of the firm
Decreasing Marginal Returns
Increasing Marginal Returns
Not Good Marginal Returns
Negative Marginal Returns
13
Entrepreneurship =
Economic system of North Korea
Organizers willing to take a risk
Goods used to produce other goods
Natural Resources used in production
14
In this stage, the marginal product of each worker added increases
Decreasing Marginal Returns
Dece Marginal Returns
Increasing Marginal Returns
Negative Marginal Returns
15
The Price Elasticity of Demand is:
the ratio of change in quantity demanded to change in price
The responsiveness of revenue to a change in quantity
The ratio of change in Quantity Demanded to Change in price
the response of revenue to a change in price.
16
What customers consider spending, Firms consider ______
Complements
Supply
Revenue
Costs
17
When Quantity Supplied = Quantity Demanded
Elasticity of Demand
Equilibrium Price
Producer's Revenue
Unit of Equilibrium Maximization
18
If an item is needed immediately and there are not many substitutes, the demand is often:
Inelastic
Unit Elastic
Elastic
Diminishing Elastic
19
This figure shows a ________ Demand curve
Quazilastic
Elastic
Inelastic
Unit Elastic
20
Costs that occur with little to no activity by the firm
Elastic Costs
Overhead
Variable Costs
Inelastic Costs
21
A Complementary good is:
A good that hurts the value of another good
A good that cannot be replaced
A good that enhances the value of another good
A good that can be used in the place of another good
22
Variable costs are costs that occur no matter what
False
True
23
Example of a variable cost:
Rent paid to a landowner
The cost of alumium
Property Taxes
Payment of executives
24
In this stage, marginal product is still positive but the increase is slowing down
So-so Marginal Returns
Decreasing Marginal Returns
Negative Marginal Returns
Increasing Marginal Returns
25
Law of Demand:
If Quantity Demanded goes up, Marginal Revenue will fall
If Price goes down, Quantity Demanded goes up
If Price goes up, Quantity Demanded goes up
If Price stays constant, Demand will fall
26
The change in quantity demanded because of a change in price that alters consumer's income
Demand Effect
Income Effect
Quantity Effect
Substitution Effect
27
A Demand curve slopes ___ and a Supply curve slopes _____
Up, Up
Down, Up
Down, Down
Up, Down

U2: Supply and Demand Review Flashcards | StudBud