PB&J

When demand shifts to the left, what will happen to the market equilibrium price?

• Price increases

• Price decreases

• Price remains constant

• It depends on the cause of the shift

An effective price floor causes which of the following?

• Equilibrium

• Surplus

• Shortage

• Market reform

Which of the following is an example of a variable cost?

• Raw materials

• Profit

• Building rent

• Surplus

What is profit?

• Revenue

• Gross Revenue

• Cost of Inputs minus Revenue

• Revenue minus cost of Inputs

If a good has an elastic demand, an increase in price will result in

• a small decrease in Qd

• a large decrease in Qd

• a small increase in Qd

• a large increase in Qd

When the price of a product increases, there is

• a shift in demand

• movement along the demand curve

• a change in elasticity of demand

• no effect on the Qd

What is the Law of Supply?

• When demand goes up, supply decreases

• Supply shifts to the right due to technology

• When price increases, Qs decreases.

• When price increases, Qs increases.

Which explains the Law of Demand?

• When prices go down, people have an increased income

• When the price of a good increases, people tend to buy substitutes instead

• People prefer inferior goods during a recession

• People often buy eggs and bacon together

Which are substitutes?

• Jelly and Jam

• Eggs and Bacon

• Apples and Broccoli

• Mugs and Candles

When consumer income decreases

• demand for normal good increases

• demand for normal goods stays constant

• demand for inferior goods increases

• supply for inferior goods increases