Economics Final Part 2

Which factor will decrease the demand for a product?

A decrease in the number of buyers.

Which of the following is the best example of the law of supply?

A sandwich shop increases the number of sandwiches when the price increases.

In the graph above if the demand curve moves from D1 to D2 what has happened?

An Increase in demand.

How many businesses make up an oligopoly?

Few.

Assume that a leather garment is a normal good. An increase in the price of leather, an input and a simultaneous increase in consumers' incomes will most likely have which of the following effects on the equilibrium price and quantity of leather garments?

Increase and Indeterminate.

Assume the government subsidizes the production of a good every year. Which of these would be the most likely result if that government stopped the subsidies?

Increase in the price of products.

On a supply and demand graph, what is the point called at which quantity demanded equals quantity supplied?

Increase in the price of products.

Sugar is an important input in the production of cookies. If the price of sugar decreases. What would we expect to happen to the supply of cookies?

Increases

Which of these actions would most likely result in a decrease in consumer spending?

Increasing income taxes.

Denver Bronco tickets are sold out every year in spite of price increases. therefore, Denver Bronco's tickets are which of the following?

Inelastic.

There are low barriers to entry

Monopolistic Competition.

While products are nearly identical, there is some slight variation

Monopolistic Competition.

Major League Baseball is an example of this market structure

Monopoly.

There are high barriers to entry

Monopoly.

There is total control over price

Monopoly.

Which of the following describes a market in which one firm controls the supply and pricing of a good or service?

Monopoly.

Airlines are an example of this market structure

Oligopoly.

Price fixing and cartels are a common feature of this market structure

Oligopoly.

Which of the following is a competitive market that has only a few firms controlling the production of a product?

Oligopoly.

Banana sellers represent this market

Perfect Competition.

Types of goods are ALL the same AND identical

Perfect competition.

If a government sets a maximum price for a good or service, what does it create?

Price ceiling.

What is most likely to happen when consumers want to buy more scooters than the store has available for sale?

Price of the scooter will increase.

What is the result of a price ceiling which is a price set below equilibrium price?

Shortage.

In a market economy, what determines the price and quantity of most goods produced?

Supply and demand.

In a market economy, when consumers and producers act in their own self-interest, which is most likely to be the overall result?

The market will have less variety and fewer products will be made.

A hurricane hit Florida and destroyed half of the orange crop. What would most likely happen to the orange market?

The price of oranges will increase.

Assume that the market for computers begins in equilibrium. Then, there is a decrease in a price of Pentium processors used in the production of computers. When the new equilibrium is reached

The price of the computers will have fallen and the quantity will have risen.

If the government places a price ceiling on leather garments that is below the equilibrium price, which of the following will occur in the market for leather garments?

There will be a shortage.