Supply and Demand Flashcards

1

Price Ceilings create

Shortages
Surpluses
Equilibrium
Demand

2

If Qs is greater than Qd

It is a price ceiling
There is a surplus
The market is at equilibrium
There is a shortage

3

Which of the following would cause the equilibrium price of a normal good to rise?

Rising incomes
A quota
All of the above
Higher taxes

4

Stock on hand

Inventory
Sales
Market
Demand

5

When demand increases

Equilibrium price rises
No change occurs to equilibrium
Supply decreases
Equilibrium price falls

6

A price floor

Creates shortages
Sets a minimum price
Sets a maximum price
Sets the equilibrium price

7

When the quantity demanded is equal to quantity supplied

There is a shortage
There is a surplus
The price is at equilibrium

8

Increasing popularity of a product causes

no change in equilibrium
equilibrium price to rise
equilibrium price to fall
a surplus

9

If there was a surplus of teachers we would expect

No change in teacher pay
The wages of teachers to fall
The wages of teachers to rise
A price floor

10

If the price of a good rises, the equilibrium price of its substitute will

rise
be zero
stay the same
fall

11

New manufacturing technologies generally cause

shortages
no change to equilibrium price
equilibrium price to go up
equilibrium price to go down

12

Where do we find equilibrium?

Below the X
Above the X
At the intersection of the supply and demand curve
At zero

13

Subsidies cause

supply to increase
equilibrium price to rise
demand to increase
shortages

14

Subsidies cause the equilibrium price of a product to

fall
become too expensive
stay the same
rise

15

When supply increases,

Equilibrium price falls
No change occurs to equilibrium price
Shortages occur
Equilibrium price rises

Supply and Demand

Questions 15

Supply and Demand

Questions 15