Economics Unit 2

A drop in price will

• increase the quantity demanded of goods

• decrease the quantity demanded of goods

• not affect the quantity demanded of goods

• change the law of demand

Which of the following goods are the most demand inelastic?

• PS4

• iPhone 8x

• Gasoline

• Starbucks Triple Venti, Half Sweet, Non-Fat, Caramel Macchiato, w/ Soy Milk

Advances in Technology usually...

• Lower costs and increase supply at all price levels

• increase cost and increase supply at lower price levels

• lower costs and increase supply at higher price levels

• increase cost and decrease supply at all price levels.

Which statement explains why prices rise in a market?

• producers produce a quantity greater than consumers want to buy

• consumers buy much less of a good than they have in previous years

• new producers enter the market

• there is excess demand in the market

A market is in equilibrium when

• quantity demanded is greater than quantity supplied

• quantity supplied and quantity demanded are equal

• quantity supplied is greater than quantity demanded

• quantity supplied and quantity demanded are set by the government

When the actual price in a market is required to be below the equilibrium price, you have

• Equilibrium

• A price Floor

• A price ceiling

• Excess Supply

The supply curve is typically:

• flat

• upward sloping

• downward sloping

• negative slope

Total revenue is defined as the amount of

• profit a company makes

• profit a company makes after paying taxes

• money a company receives by selling its goods

• money affected by price elasticity

A minimum price for a good or service

• Price Floor

• Price Ceiling

• Minimum Wage

• Surplus

The following leads to a decrease in supply

• complementary goods

• government subsidies

• government regulation

• advances in technology