Applied Economics _Quarterly 3_Long Quiz

1.      It is a commodity or service in short supply relative to its demand, which implies a constant availability of commodity or economic resource, relative to the demand of them.

• Short run      

•      Profit      

• Scarcity        

•     Supply

What is the state in which market supply and demand balance each other, and as a result prices become stable?

• Market Price

• Market Equilibrium

• Market Disequilibrium

What is characterized by changes in conditions where supply and demand are out of balance?

• Market Price

• Market Disequilibrium

• Market Equilibrium

What happens to the market when the chocolate bars are priced at $4 each?

• surplus

• shortage

• equilibrium

What happens to the market when the chocolate bars are priced at $1 each?

• shortage

• surplus

• equilibrium

Which statement below would be the most correct to describe the equilibrium price?

• $600

• $600 per month

• $500 per month

• $700

Which statement below would be the most correct to describe the equilibrium quantity ?

• 15 rental houses

• 15000

• 15000 rental houses

• 15

Describes very little a change in demand with a large change in price 

• elastic 
• inelastic 
• demand curve 
• price 

The formula for calculating elasticity of demand is:

• The % change in price over the % change in quantity demanded
• The % change in quantity demanded over the % change in price
• The change in price over the change in quantity demaned
• The change in quantity demanded over the change in price

What does it mean?

PED = 0

• Perfectly inelastic demand

• Inelastic demand

• Unitarily elastic demand

• Elastic demand

• Perfectly elastic demand