Supply and Demand

Question 1

a cost that does not change regardless of how much is produced

Accepted Answer

fixed cost

Question 2

If milk and cereal are complements, what would happen to the demand for milk if the price of cereal decreased?

Accepted Answer

it would increase

Question 3

maximum price that can be charged for a good

Accepted Answer

price ceiling

Question 4

amount of goods available

Accepted Answer

supply

Question 5

If a market is in equilibrium, and there was an increase in demand, what would happen to price?

Accepted Answer

increase

Question 6

What effect would a price increase have on a good with elastic demand?

Accepted Answer

Quantity demanded would fall a lot so revenue would decrease

Question 7

Which of the following would NOT cause a shift in demand for apple juice?

Accepted Answer

an increase in the price of apple juice

Question 8

A cost that changes based on how much is produced

Accepted Answer

variable cost, total cost

Question 9

How do you calculate total cost?

Accepted Answer

Fixed Cost + Variable Cost

Question 10

goods that are bought and used together

Accepted Answer

complements

Question 11

cost of producing one more unit

Accepted Answer

marginal cost

Question 12

minimum price that can be charged for a good or service

Accepted Answer

price floor

Question 13

Ground beef and hamburger buns would be an example of

Accepted Answer

complements

Question 14

Which of the following BEST describes the law of supply in action?

Accepted Answer

A construction company builds more houses as the price of housing rises.

Question 15

What does it mean for a good to have inelastic demand?

Accepted Answer

A price increase will not significantly impact demand.

Question 16

Which good would most likely have inelastic demand?

Accepted Answer

heart medicine

Question 17

situation where quantity supplied and quantity demanded are not equal

Accepted Answer

disequilibrium

Question 18

Which of the following would be complements?

Accepted Answer

milk and cereal

Question 19

Which of the following would most likely cause supply shock?

Accepted Answer

a sudden increase in demand due to a popular fad

Question 20

On the graph above, which line represents the Supply Curve?

Accepted Answer

X

Question 21

How do you calculate total revenue?

Accepted Answer

Output x Market Price

Question 22

Which of the following is an example of a FIXED COST for a business?

Accepted Answer

rent

Question 23

Goods that are used in place of one another

Accepted Answer

substitutes

Question 24

On the graph above, which point would represent excess supply?

Accepted Answer

C

Question 25

the measure of how quantity demanded reacts to a change in price

Accepted Answer

elasticity of demand

Supply and Demand

Questions 25

Supply and Demand

Questions 25