Micro Unit 2 Intro- Supply and Demand

Mr. Clifford provides an overview of microeconomics unit 2, focusing on supply and demand. The video covers key concepts such as demand, supply, equilibrium, and elasticity. It also discusses government interventions like taxes and subsidies, and explores consumer choice and marginal utility. The video emphasizes the importance of understanding these concepts for future units.

What is the key difference between a change in demand and a change in quantity demanded?

• A change in demand is caused by price changes, while a change in quantity demanded is due to other factors.

• A change in quantity demanded is caused by price changes, while a change in demand is due to other factors.

• Both are caused by changes in consumer preferences.

• Both are caused by changes in supply.

Which of the following can cause a shift in the supply curve?

• A change in the price of substitutes

• A change in consumer preferences

• A change in production technology

• A change in consumer income

What happens when the market reaches equilibrium?

• The quantity supplied equals the quantity demanded.

• There is a shortage of goods.

• There is a surplus of goods.

• The government intervenes to set prices.

How does elasticity affect consumer behavior?

• It determines how much less consumers will buy when prices increase.

• It determines how much more consumers will buy when prices decrease.

• It only affects producers, not consumers.

• It has no effect on consumer behavior.

What is the focus of consumer choice theory?

• Maximizing production efficiency

• Minimizing costs for producers

• Maximizing consumer satisfaction through decision-making

• Minimizing government intervention