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WorksheetsQuizizz--Economics (Module 2--Element 1.6)--Prices
Total questions: 32
Worksheet time: 16mins
What is the relationship between the price of a good and the quantity demanded called?
Law of supply
Law of demand
Law of equilibrium
Law of production
What does the law of supply describe?
Negative relationship between price and quantity supplied
Positive relationship between price and quantity supplied
No relationship between price and quantity supplied
Inverse relationship between price and quantity supplied
How does the demand curve typically slope?
Upward to the right
Downward to the right
Horizontal
Vertical
What does the supply curve indicate?
Quantities consumers will purchase at alternative prices
Quantities producers are willing to supply at alternative prices
Fixed quantities regardless of price
Maximum price producers will accept
What is the equilibrium price of ice cream in the example provided?
$2
$3
$4
$5
What happens when the price of ice cream is higher than the equilibrium price?
Demand increases and supply decreases
Supply exceeds demand, leading to excess inventory
Demand and supply are equal
Demand exceeds supply, leading to shortages
What is the effect of a price lower than the equilibrium price on the market?
Excess supply and downward pressure on price
Excess demand and upward pressure on price
Equilibrium is maintained
No effect on demand or supply
What role does price play in the market according to the text?
It only affects consumers
It coordinates the choices of consumers and producers
It has no effect on supply and demand
It only affects producers
What does the auction system on eBay illustrate?
The operation of demand and supply
The process of online marketing
The concept of digital payments
The role of social media in sales
What is a reserve price on eBay?
The maximum price a buyer is willing to pay
The minimum price a seller will accept
The average price of similar items
The price after a discount
When does exchange occur in an eBay auction?
When the buyer bids below the reserve price
When the buyer bids above the seller's minimum asking price
When the auction ends without any bids
When the seller lowers the reserve price
What does the height of the demand curve indicate?
The minimum price a seller will accept
The maximum amount a consumer is willing to pay
The average market price
The cost of production
What happens when the equilibrium price is present?
No units are produced or purchased
Only sellers gain from the trade
All potential gains from exchange are realized
Only buyers gain from the trade
What is the implication of market prices according to the text?
They only balance quantity demanded and supplied.
They direct producers to supply goods valued less than production cost.
They direct producers to supply goods valued more than production cost.
They have no effect on production decisions.
Which factor is NOT mentioned as influencing market demand?
Consumer income
Prices of related goods
Weather conditions
Expectation of future price increase
What is a common error in economics according to the text?
Confusing a change in demand with a change in quantity demanded
Ignoring consumer income
Overestimating the number of consumers
Misjudging the price of related goods
What happens to the demand curve when there is an increase in consumer income?
It shifts to the left.
It shifts to the right.
It remains unchanged.
It becomes vertical.
What happens to the quantity supplied when there is an increase in demand?
It decreases from 20 thousand to 15 thousand.
It remains the same.
It increases from 15 thousand to 20 thousand.
It decreases from 15 thousand to 10 thousand.
What effect does a reduction in consumer income have on the demand for ice cream?
It increases demand.
It shifts the demand curve to the right.
It reduces demand and shifts the demand curve to the left.
It has no effect on demand.
What happens to the supply curve when there is an improvement in technology?
The supply curve shifts to the left.
The supply curve shifts to the right.
The supply curve remains unchanged.
The supply curve becomes vertical.
What is the impact of a reduction in the prices of cream and milk on the supply and market price of ice cream?
Supply decreases and market price increases.
Supply increases and market price declines.
Supply remains the same and market price increases.
Supply decreases and market price remains the same.
What effect does a decrease in the prices of cream and milk have on the supply curve for ice cream?
It shifts the supply curve to the left.
It shifts the supply curve to the right.
It causes the supply curve to remain unchanged.
It causes the supply curve to become vertical.
What happens to the equilibrium price of ice cream when the supply curve shifts to the right?
It increases from $3 to $4.
It decreases from $3 to $2.
It remains at $3.
It increases to $5.
What is the result of an increase in supply on the quantity demanded of ice cream?
The quantity demanded decreases.
The quantity demanded remains the same.
The quantity demanded increases.
The quantity demanded becomes zero.
What would happen if the cost of producing ice cream increased?
Supply would increase, and prices would decrease.
Supply would decrease, and prices would increase.
Supply would remain unchanged, and prices would decrease.
Supply would increase, and prices would remain unchanged.
Because of the arrival of a major new business in town, average incomes have gone up, creating an increased demand for ice cream at a popular store. What will happen as a consequence:
The Demand Curve will shift left, and the equilibrium price will increase
The Demand Curve will shift right, and the equilibrium price will increase
The Demand Curve will shift left, and the equilibrium price will decrease
The Demand Curve will shift right, and the equilibrium price will decrease
The foundation of trade is:
mutual gain based on voluntary exchange resulting in each party involved being better off than they were before trading.
governments decide trade policy to provide the best for the electorate and do what is best for the nation as a whole.
to make the transaction costs as high as possible to ensure every exchange is carefully thought through and does not happen too quickly.
Which of the following best describes how prices act as a signal?
Prices indicate how the rich can get richer and the poor get poorer.
Prices are not able to change quickly enough to act as a sufficient market signal.
Prices coordinate the choices of buyers and sellers of products and bring them into balance.
Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, then it would be reasonable to conclude that
Georgia has a comparative advantage in producing peaches.
the opportunity cost of growing oranges is higher in Florida than in Georgia.
Florida has a comparative advantage in producing peaches.
total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.
When a government prevents a voluntary exchange between a consumer and producer,
the consumer is better off, but the producer is worse off.
both parties to the potential exchange are worse off than they would have been if the trade had been allowed.
goods move from people who value them less to people who value them more.
both consumers and producers are better off.
The price of a good will tend to fall when
there is excess demand for the good.
demand for the good increases.
the supply of the good decreases.
there is excess supply of the good.
If the price of a good is below the equilibrium
the inventories of producers will rise and the market price will tend to fall.
the inventories of producers will fall and the market price will tend to decline.
the inventories of producers will fall and the market price will tend to rise.
the inventories of producers will increase and the market price will tend to rise.
