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Unit 10 L01 So Far Flashcards | StudBud
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Unit 10 L01 So Far
Unit 10 L01 So Far
18 terms
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Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
Which curve is downward sloping?
Demand
Supply and Demand
Simple
Supply
2
How would a subsidy to support UK farmers affect their supply curve?
Right shift
Left shift
Contraction
Expansion
3
What does price disequilibrium mean?
Price that does not affect supply
Price that does not affect demand
Price which means supply and demand are equal
Price that could create a shortage or surplus
4
Ceteris paribus means that all other factors are equal
False
True
5
Cinemas have fixed supply so are unable to alter supply in the short term
False
True
6
Lower quality substitutes need to be cheaper in order to generate demand
True
False
7
As price increases Supply contracts
True
False
8
A right shift in supply without any change in demand would lead to...
Higher equibrium price
Right shift in demand
No impact
Lower equilibrium price
9
A decrease in the price of a complementary product causes a left shift in demand
True
False
10
What happens to demand for inferior goods if income levels fall?
Expansion
Contraction
Shift to the left
Shift to the right
11
What would setting the price at P2 cause?
Excess supply
Expansion of demand
Excess demand
New equilibrium price
12
What causes a contraction of demand?
A new competitor
A cheaper subsititute
Lower price
Higher price
13
Which of these events would cause a left shift in supply?
Reduction in tax
Cheaper raw materials
Increase in demand
External shock
14
What does inelastic demand mean?
A change in price has no impact on demand
A change in price does not affect supply
Changes in price have a small impact on demand
Changes in demand have a large impact on demand
15
What does marginal utility mean?
Change in satisfaction from consuming an additional unit
How demand affect supply
Demand rises as we consume additional units
How income affect demand
16
What happens to demand if the price of a normal good rises?
Shift to the right
Expansion
Contraction
Shift to the left
17
What would happen if the business decided to use price P2?
No impact
Excess demand
Excess supply
Contraction of demand
18
Which of these products are likely to have elastic demand?
Cigarettes
Petrol
Coca Cola
Gucci bag
