Flashcard - Supply and Demand

Front

Before Thanksgiving, the price of turkeys increase and the demand also increases. Is this a violation of the law of demand?

Back

No, a non-price factor is increasing the demand and causing the demand curve to shift right.

Front

The law of supply states that, all other factors being equal, as the product price _________________ the quantity of the product provided by sellers decreases.

Back

decreases

Front

Which economic field of study focuses on larger-scale topics such as gross domestic product and national unemployment?

Back

Macroeconomics

Front

The Law of Demand states that, all other factors being equal, as the product price increases, the quantity of the product sought by buyers __________.

Back

decreases

Front

Which direction does the demand curve slope?

Back

down

Front

How does the following situation SHIFT the demand curve for specific brand of house paint? The manufacturer increases prices to maximize profit.

Back

It does not shift the curve.

Front

Which direction does the supply curve slope?

Back

Up

Front

Refer to the graph. The equilibrium price and quantity for this product will be: $60 and 2,600, $100 and 1,000, $30 and 1,000, $100 and 5,000, $30 and 5,000

Back

$60 and 2,600

Front

Refer to the graph. Which area indicates a surplus? Options: A, B, C, D

Back

B

Front

The two broad fields of study in economics are ________________ and ________________.

Back

microeconomics and macroeconomics