2.0 Economics Unit 2 Review

What is surplus?

• A surplus occurs when quantity supplied exceeds quantity demanded, leading to a decrease in prices.

• A surplus occurs when quantity demanded exceeds quantity supplied, leading to an increase in prices.

• A surplus has no impact on the market as it is a temporary imbalance.

• A surplus occurs when there is no demand for a product, leading to a decrease in prices.

What is the definition of 'equilibrium price'?

• Demand refers to the desire for a product, while quantity demanded refers to the actual amount of the product consumers are willing and able to buy at a given price.

• Demand and quantity demanded are two different terms that have no relationship to each other.

• Demand and quantity demanded are interchangeable terms that mean the same thing.

• the price at which the quantity demanded of a good or service is equal to the quantity supplied, resulting in a market balance.

The _______ states that when price goes down, quantity supplied decreases, and when price goes up, quantity supplied increases.

• Supply

• Law of Supply

• Supply Schedule

What is the basic foundation of the law of demand?

• Services are of interest in the same way that goods are.

• When a good's price is lower, people will buy more of it.

• Everyone has a limited income that they will spend.

• The higher the price, the more people will want the good.

What shows the amounts of products demanded at each price by all consumers?

• An elasticity and consumption list

• A market pricing list

• A market demand schedule

• A schedule of consumer prices

When the selling price of a good goes up, what is the relationship to the quantity supplied?

• The higher the price, the more people will want the good.

• Everyone has a limited income that they will spend.

• When a good's price is lower, people will buy more of it.

• Services are of interest in the same way that goods are.

Match Term to correct Definition.

• Demand

• the quantity of a good or service that consumers are willing and able to buy at a given price in a specific period of time.

• Market

• the price at which the quantity demanded of a good or service is equal to the quantity supplied, resulting in a market balance.

• Equilibrium Price

• a place or system where buyers and sellers interact to trade goods or services.

• Supply Schedule
  

• a table or graph that shows the quantity of a good or service that producers are willing and able to sell at different prices during a specific period of time.

• Supply

• the quantity of a good or service that producers are willing and able to sell at a given price in a given time period.

Match Term to correct Definition.

• Equilibrium

• an economic principle that states that as the price of a good or service increases, the quantity supplied by producers also increases, and vice versa.

• Quantity Supplied
  

• the amount of a good or service that producers are willing and able to offer for sale at a given price during a specific period of time.

• Quantity Demanded

• a factor that influences the quantity demanded or supplied of a good or service, other than its price.

• Law of Supply

• 
  a state of balance or stability, where opposing forces or influences are equal.

• Non-price determinant

• 
  the amount of a good or service that consumers are willing and able to buy at a given price during a specific period of time.

Match Term to correct Definition.

• Excise Taxes

• an economic principle stating that as the price of a good or service increases, the quantity demanded decreases, and vice versa, assuming all other factors remain constant.

• Shortage

• a situation in which the quantity demanded of a good or service exceeds the quantity supplied, resulting in a temporary imbalance in the market.

• Demand Schedule
  

• taxes imposed on specific goods or services, typically levied at the production or sale stage rather than at the point of purchase.

• Surplus

• a table that shows the relationship between the price of a good or service and the quantity demanded at different prices, assuming all other factors remain constant.

• Law of Demand

• a situation in which the quantity supplied of a good or service exceeds the quantity demanded, resulting in excess supply in the market.

Based on the information in the graph and the table, what is the equilibrium price of pizza?

• A. $2.00

• B. $4.00

• C. $3.00

• D. $5.00