Exam 2: Units 4-6

What does supply refer to in the context of market forces for supply and demand?

• The quantity of a good or service that consumers are willing and able to buy at various prices.

• The quantity of a good or service that producers are willing and able to offer for sale at various prices.

• The amount of money required to purchase a good or service.

• The total number of goods available in the market.

What does demand refer to in the context of market forces for supply and demand?

• The quantity of a good or service that producers are willing and able to offer for sale at various prices.

• The total number of goods available in the market.

• The quantity of a good or service that consumers are willing and able to buy at various prices.

• The amount of money required to purchase a good or service.

How can a change in supply or demand affect the market?

• It can change the equilibrium price and quantity.

• It can only affect the quality of goods and services.

• It can only change the preferences of consumers.

• It can only affect the number of producers in the market.

What does elasticity measure in the context of supply and demand?

• The maximum price of a good

• The responsiveness of quantity demanded or supplied to a change in price

• The quantity of a good supplied at different prices

• The percentage change in quantity demanded over time

What is a supply schedule?

• A list of prices for different goods

• A graph showing the demand for a product

• A table showing the quantity of a good supplied at different prices

• A method to calculate price elasticity

What can cause movements along the supply and demand curves?

• Changes in consumer preferences only

• Changes in technology only

• Changes in price only

• Changes in factors such as input costs, technology, or consumer preferences

What can cause shifts in the supply and demand curves?

• Changes in price only

• Changes in factors such as input costs, technology, or consumer preferences

• Movements along the curves

• The responsiveness of quantity demanded or supplied

What is the difference between price ceilings and price floors?

• Price ceilings set a minimum price, while price floors set a maximum price

• Price ceilings and price floors both set a maximum price

• Price ceilings and price floors both set a minimum price

• Price ceilings set a maximum price, while price floors set a minimum price

How is price elasticity using the midpoint method calculated?

• By dividing the percentage change in quantity demanded by the percentage change in price

• By multiplying the percentage change in quantity demanded by the percentage change in price

• By adding the percentage change in quantity demanded to the percentage change in price

• By subtracting the percentage change in quantity demanded from the percentage change in price

What happens to the burden of a tax depending on the elasticity of demand and supply?

• It is always passed along to the consumers

• It is always passed along to the producers

• It can be shifted onto consumers or producers depending on the elasticity

• It does not affect consumers or producers