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WorksheetsSupply and Demand II
Total questions: 40
Worksheet time: 1hrs 11mins
A table that lists the quantity of a good that a single person will buy at each price in a market.
demand schedule
market demand schedule
elasticity chart
supply and demand graph
The minimum wage is the ____________________ for wages in the United States.
price ceiling
price floor
market price
equilibrium price
What determines how a change in price will affect total revenue for a company?
Elasticity of Demand
The company's pricing policy
Values of Elasticity
The Consumer's Incomes
The government can affect supply through all of the following except…?
Subsidies
Taxes
Technology
Regulations
Which of the following is likely to decrease the demand for peanut butter?
Fewer children in the population
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
A big increase in the price of jelly.
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
Latin phrase meaning all other things held constant
Ceteris Parabis
Cogito Ergo Sum
Seize the Day
Celery Parables
Which of the following is NOT a reason why prices effectively perform the allocation function?
Prices favor neither the producer nor the consumer.
Prices remain surprisingly stable despite unexpected events.
Competitive markets find their own prices without interference.
Prices are easily understood.
If the price of gas rises, what happens to its supply?
Supply Lowers
Stays the Same
Enter the Matrix
Supply Rises
All of the following are true for goods with ELASTIC demand, EXCEPT _______
They are luxuries
They have lots of substitutes
They are necessities
Buying habits change a lot when price changes
Cheeseburgers and ice cream have relatively horizontal demand curves which are said to be
complementary.
upward sloping.
elastic.
inelastic.
The difference between a change in demand and a change in quantity demanded is that a change in demand
only occurs with a change in price.
only occurs when a determinant of supply changes.
represents a movement along the demand curve.
represents a shift or movement of the entire demand curve to the right or left.
At a given price, a surplus occurs when
the quantity demanded is more than the quantity supplied.
the quantity demanded is the same as the quantity supplied.
the quantity supplied is less than the quantity demanded.
the quantity supplied is greater than the quantity demanded.
If total revenue increases for a company after it raises the price of its product the product is said to be
inelastic in its demand.
elastic in its demand.
inelastic in its supply.
elastic in its demand.
Something whose demand doesn't change when price changes:
Inelastic
Elastic
Prices have the advantages of neutrality, ____________________, efficiency, and clarity.
total revenue
miscommunication
disparity
flexibility
Which economic concept is defined as the measure of how responsive consumers are to a price change?
consumer expectations
consumer taste
decreasing marginal utility
elasticity of demand
In a market economy, a high price is a signal for
producers to supply more and consumers to buy less.
producers to supply less and consumers to buy less.
government to intervene to protect consumers.
producers to supply less and consumers to buy more.
The only thing that causes movement along a supply or demand curve:
Price
Quantity
Climate
Weather
The federal minimum wage law demonstrates
market equilibrium.
a societal choice for economic equity over efficiency.
the function of equilibrium price in a competitive market.
government intervention to ensure the equilibrium price.
Goods that people buy more of when income increases:
Normal goods
Inferior goods
Expensive goods
Inexpensive goods
____________________ serve as signals to both producers and consumers.
Stocks
Equilibriums
Supply schedules
Prices
For a business, fixed costs + variable costs =
Profit
Revenue
Total Cost
Gains
A business doubled the price of a product in order to increase profits. Which of the following scenarios might have occurred?
A sharp increase in revenues demonstrated the elasticity of the product.
A small increase in revenues demonstrated the unit elasticity of the product.
A dramatic decline in revenues demonstrated the elasticity of the product.
A dramatic decline in revues demonstrated the inelasticity of the product.
A demand curve slopes
Downward
Upward
Vertical
Horizontal
Christina Aguilera launches the “Jeanie in a Bottle” jeans company. What will happen to the supply of jeans?
stays the same, there is no determinant of supply here
decrease, tastes and preferences
increase, number of sellers
increase, cost of inputs
If the price of an input to production increases,
demand increases
demand decreases
supply increases
supply decreases
If new technology makes producing a good more efficient,
supply increases
supply decreases
demand increases
demand decrease
In elastic demand, as the price decreases, total revenue will...
increase
decrease
stay the same
The elasticity on a item such as gas is:
Very elastic
Not inelastic
Very responsive
Inelastic
Candy and tacos have relatively horizontal demand curves which are said to be
elastic
inelastic
unit elastic
loss leader
The following is a factor that will not cause the demand curve to shift:
Advertising
Population
Price
Consumer expectations
The three stages of production are: increasing returns, ____________________ returns, and negative returns.
elastic
diminishing
substitution
input
Consumers demand less of this type of good when their income rises.
Normal good
Inferior good
Elastic good
Related good
Higher prices generally
discourage consumers from seeking a substitute.
discourage producers from entering a market.
motivate consumers to buy.
motivate producers to enter a market.
According to the law of supply, when prices decrease
quantity supplied decreases
quantity supplied increases
supply decreases
supply increases
The price of Chipotle goes from $7 a burrito to $.50. What will happen to the demand for Chipotle burritos?
increase; tastes and preferences
increase; change in income
decrease; change in income
stays the same; price is not a determinant of demand
A surplus happens when
prices are too low relative to consumer demand.
prices are too high relative to consumer demand.
prices are too low relative to producer demand
prices are too high relative to producer demand.
All of the following can change the supply curve EXCEPT
cost of labor
expectation that prices are about to increase
change in demand for the product
# of sellers
One of these variables does not shift (moves) the demand curve
A change in prices
A change in tastes
A change in income
A change in expectations
In inelastic demand, as the price decreases, total revenue will...
increase
decrease
stay the same
