Unit 2 - Supply and Demand review

Question 1

What would an economist consider a likely SUBSTITUTE for coffee

Accepted Answer

tea

Question 2

What test do economics use to measure elasticity?

Accepted Answer

total expenditure

Question 3

If a man will pay a high price for food and after he won't pay the same price this is

Accepted Answer

diminishing marginal utility

Question 4

A change in quantity demanded creates which of the following?

Accepted Answer

Movement along the demand curve

Question 5

A surplus is when

Accepted Answer

Supply is greater than demand

Question 6

Minimum wage is an example of

Accepted Answer

a price floor

Question 7

Changes in quantity demanded and changes in price have a(n) ____________ relationship.

Accepted Answer

inverse

Question 8

Which would an economist consider a likely complement for coffee.

Accepted Answer

donuts

Question 9

An example of a price ceiling is....

Accepted Answer

Rent control

Question 10

On a demand curve,movement ALONG the curve,as opposed to a shift of the curve,is a result of ..

Accepted Answer

a change in price

Question 11

What factors create a shift in demand (2 answers)

Accepted Answer

The number of buyers, A change in income

Question 12

Which product most likely has a demand that is INELASTIC?

Accepted Answer

medicine

Question 13

What does TRIBE for?

Accepted Answer

The 5 factors that shift demand

Question 14

If the market price of apts in Phx is $1k and the city says that it will be $700, this will

Accepted Answer

cause a shortage of apartments

Question 15

If the price of peanut butter increases, the demand for bread will decrease, because they are

Accepted Answer

complements

Question 16

What are the characteristics of demand?

Accepted Answer

the desire,ability and willingness to buy a product.

Question 17

The law of demand explains that when the price of something increases, the demand will....

Accepted Answer

decrease

Question 18

The law of supply states that as the price of something increases, the supply will

Accepted Answer

increase

Questions 18