Supply and Demand II

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule

• market demand schedule

• elasticity chart

• supply and demand graph

The minimum wage is the ____________________ for wages in the United States.

• price ceiling

• price floor

• market price

• equilibrium price

What determines how a change in price will affect total revenue for a company?

• Elasticity of Demand

• The company's pricing policy

• Values of Elasticity

• The Consumer's Incomes

The government can affect supply through all of the following except…?

• Subsidies

• Taxes

• Technology

• Regulations

Which of the following is likely to decrease the demand for peanut butter?

• Fewer children in the population

• News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.

• A big increase in the price of jelly.

• A report from the Surgeon General of the United States that eating peanut butter makes people nutty.

Latin phrase meaning all other things held constant

• Ceteris Parabis

• Cogito Ergo Sum

• Seize the Day

• Celery Parables

Which of the following is NOT a reason why prices effectively perform the allocation function?

• Prices favor neither the producer nor the consumer.

• Prices remain surprisingly stable despite unexpected events.

• Competitive markets find their own prices without interference.

• Prices are easily understood.

If the price of gas rises, what happens to its supply?

• Supply Lowers

• Stays the Same

• Enter the Matrix

• Supply Rises

All of the following are true for goods with ELASTIC demand, EXCEPT _______

• They are luxuries

• They have lots of substitutes

• They are necessities

• Buying habits change a lot when price changes

Cheeseburgers and ice cream have relatively horizontal demand curves which are said to be

• complementary.

• upward sloping.

• elastic.

• inelastic.