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EPF Module 3 Flashcards | StudBud
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EPF Module 3
EPF Module 3
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StudBud Administration
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#supply&demand Virtual Virginia
Flashcards
23 cards
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Questions
23
Answers
1
A price ceiling
Usuallycreates a surplus in the market
Usually creates a shortage in the market
Is used if the market price is too low
Is a legal barrier that sets a market price
2
Which of the following is a determinant of supply?
conditions of production
number of suppliers
resources prices
all of the above
3
The varying amts of a good or service that producers are will and able to provide
demand
supply
interest
debt
4
A good that experiences an increase in demand due to an increase in a consumer's income
free good
normal good
inferior good
complimentary good
5
A __ is the lowest price at which a good or service can be purchased.
substitute
price ceiling
price floor
consumer surplus
6
Which of the following is a determinant of demand?
tastes and preferences
income
all of the above
number of buyers
7
The equilibrium price and quantity of milk in this market is
$1.50and 28 million gallons
$1.50 and 30 million gallons
$2.00 and 20 million gallons
$1.00 and 35 million gallons
8
Which of the following is an example of a price ceiling?
rent control or a cap of prescription drugs
all of the above
minimum price of $1.00 for a bag of sugar
minimum wage of $7.25
9
If the cost of producing a car goes up, it will affect supply by
idk
decreasing supply
increasing supply
causing no affect on supply
10
The collection of goods or services a consumer chooses is called
price floor
consumption bundle
equilibrium quantity
consumer surplus
11
What happens to the consumer surplus as the market price decreases?
it increases
it stays the same
none of the above
it decreases
12
The set of bundles a consumer can purchase w/ a limited amount of income is called
price floor
equilibrium price
elasticity
budget constraint
13
Which of the following is true about optimal choice?
consumption bundle that allows consumers to max satisfaction
non of the above
budget constraint doesn't affect it at all
Lowest pt. on an indifference map within budget constraint
14
What happened to price and quantity in the graph?
Price decreased, quantity increased
Price increased, quantity deacreased
Price increased, quantity increased
Price decreased, quantity decreased
15
What happens to consumer surplus as price elasticity of demand increases?
it increases
it decreases
none of the above
it stays the same
16
According to the law of demand, quantity demanded will ____ as prices increase.
increase
none of the above
decrease
stay the same
17
In economics, elasticity refers to the
response of consumers and suppliers to changes in price
lowest price at which a good or service may be purchased
excess from quantity supplied being higher than demanded
maximum price that a consumer is will to pay
18
The difference between the buyer's willingness to pay and the market price is
consumption bundle
price ceiling
opportunity cost
consumer surplus
19
What is a complementary good?
a new haircut and pet monkey
pickles and french fries
Rocking chair and root beer
hot dog and buns
20
if price of peach ice cream goes up 10% & quantity demanded falls 20% then quantity demanded is ____
inelastic
unit elastic
elastic
perfectly inelastic
21
An inferior good is one that:
As incomes rise we buy more of
As the price rises we buy less of
As incomes rise we buy less of
22
Occurs in a competitive market when the price of a good is above equilibrium price?
both of the above
shortage
none of the above
surplus
23
if price of insulin falls 10% & quantity supplied falls 1%, then quantity supplied is ___
elastic
inelastic
unit elastic
perfectly inelastic
