Supply and Demand P2
Which of the following summarises many of the determinants of supply and their net effect on the supply curve? Multiple select question. A change in resource prices will increase or decrease supply and cause the supply curve to shift to the right or left respectively A change in demand will cause a direct change in supply and cause the supply curve to shift to the right or left A change in the number of buyers will increase or decrease supply and cause the supply curve to shift to the right and left respectively A change in the number of sellers will increase or decrease supply and cause the supply curve to shift to the right and left respectively
A change in resource prices will increase or decrease supply and cause the supply curve to shift to the right or left respectively A change in the number of sellers will increase or decrease supply and cause the supply curve to shift to the right and left respectively
Which of the following illustrates a change in quantity demanded? Multiple choice question. Following hurricane Katrina, oil production in the United States declined by 30% As a result of a recession in the United States, people spend less money on entertainment The price of apples rises and rises and people continue to buy more and more apples As a result of increasing prices, a person decides to buy less salt and sand for his driveway during a snowy winter
As a result of increasing prices, a person decides to buy less salt and sand for his driveway during a snowy winter Quantity demanded is based on price.
The consumer surplus is measured by the area BLANK the market demand curve and BLANK the equilibrium price.
BELOW; ABOVE
Few societies allow unrestricted BLANK BLANK for all commodities. Usually, BLANK intervene widely to alter market outcomes.
FREE MARKETS governments
True or false: Improvements in technology enable firms to produce fewer units of output with current resources. True false question. True False
False Improvements in technology enable firms to produce more units of output with current resources
All of the following are ways in which governments can affect the supply of goods and services, except: Multiple choice question. taxation regulation marketing subsidies
Marketing
The supply curve tells us how much BLANK has to be to create BLANK.
PAID SUPPLY
Which of the following are determinants of demand? Multiple select question. Corporate taxes and subsidies Prices of related goods Consumer income Consumer tastes Resource prices Number of buyers Consumer expectations
Prices of related goods Consumer income Consumer tastes Number of buyers Consumer expectations
How do improvements in productive technology enable firms to produce more units of output? Multiple select question. Produce at lower costs By using more resources per unit of output Productively and allocatively efficiently At higher costs By using fewer resources per unit of output
Produce at lower costs By using fewer resources per unit of output
True or false: The prices of factor inputs used in the production process help determine the costs of production incurred by firms. True false question. True False
True. The costs associated with the production of goods and services originate from the costs of the inputs that are required to produce those goods and services.
Producer surplus is the area BLANK the market supply and BLANK the equilibrium price.
above; below
The producer surplus for sellers is the amount that sellers benefit by selling ____ a market price that is _____ what they would be willing to sell for. Multiple choice question. below; higher than at; higher than below; lower than above; equal to
at; higher than
The consumer surplus is measured by the area BLANK the market demand curve and BLANK the equilibrium price.
below or under; above
Price BLANK mandated by government are often accompanied by government organized BLANK.
ceilings rationing
Price controls may take the form of price BLANK or price BLANK.
ceilings; floors
the BLANK surplus is the difference between the BLANK price that the consumer is willing to pay for a good or service and the price that is actually paid.
consumer; maximum/highest
Economic surplus is the sum of the BLANK surplus and BLANK surplus that buyers and sellers obtain by trading in the market.
consumer; producer
The ______ incurred by firms when producing a good or service arise from the prices of the factor inputs that are used to produce said good or service. Multiple choice question. costs of production negative externality marginal product of labor revenues and ultimately profits or losses
costs of production
A price ceiling succeeds in holding down price, but tends to lead to excess ______ Multiple choice question. need demand supply want
demand
A price ceiling succeeds in holding down price, but tends to lead to excess ______ Multiple choice question. want supply need demand
demand
The other things being equal in the relationship between price and quantity supplied are called the: Multiple choice question. determinants of demand determinants of supply determinants of sellers determinants of buyers
determinants of supply
the market decides how much of a good to produce by finding the BLANK at which quantity supplied equals the quantity BLANK.
equilibrium/price demanded
A measure for the gains that consumers obtain from trading at the _______ price is called the ______ surplus. Multiple choice question. equilibrium; producer equilibrium; consumer higher; consumer higher; producer
equilibrium; consumer
Changes in ______ about the future price of a product may affect the producer's current willingness to ______ that product. Multiple choice question. expectations; supply sentiments; demand expectations; purchase supply; demand
expectations;supply
Markets are not BLANK when PRICE controls exist
free; price
In BLANK markets prices are determines solely by the forces of BLANK and BLANK.
free; supply; demand
Economic surplus, the combination of consumer and producer surplus, is BLANK at the BLANK price.
highest; equilibrium
If producers expect lower prices for their goods or services in the future, they will ______ now, which is illustrated by a shift of the supply curve to the ______. Multiple choice question. increase their supply; right increase their supply; left decrease their supply; right decrease their supply; left
increase their supply; right Increase supply today at higher prices rather than supply more later at the expected lower prices.
A shift of the supply curve to the right reflects a(n) (increase/decrease) in supply, while a shift of the supply curve to the left reflects a(n) (increase/decrease) in supply.
increase;decrease
All of the following exemplify an improvement in technology affecting supply, except: Multiple choice question. improvements in health care increasing average life expectancies increased subsidies to farmers for producing corn for its conversion to ethanol the introduction of the mass assembly line advances in producing flat panel computer monitors that have greatly reduced their cost
increased subsidies to farmers for producing corn for its conversion to ethanol A subsidy is free money that helps to reduce the costs of production. Thus, it does not involve any technological improvements or innovations that contribute to increases in the supply of farm products
Beyond some quantity of production each added worker produces less added output. In other words, firms encounter ______ in marginal cost. Multiple choice question. no changes proportional changes increases decreases
increases
If costs of production rise, the producer has an incentive to produce BLANK output at every possible cost.
less, lower, fewer, decreased
Price ceilings make it illegal for sellers to charge BLANK than a specific BLANK price.
more, higher, or greater maximum or ceiling
Price controls are government rules or laws that set price ceilings or price floors, thereby preventing BLANK from allowing markets to BLANK.
prices clear
A change in ______ refers to a movement along the demand curve in response to changes in the price of a good or service, whereas a change in ______ refers to a shift of the demand curve leftward or rightward in response to anything other than changes in the price of a good or service. Multiple choice question. quantity demanded; demand quantity supplied; supply supply; quantity supplied demand; quantity demanded
quantity demanded; demand Qd is influenced by the price of a good in a market, while demand is driven by factors other than the price of a good in said market.
An effective price ceiling will ______ quantity supplied. Multiple choice question. reduce augment increase eliminate
reduce
Rent control or rent ceilings may result in BLANK market BLANK, causing a BLANK of rental units or housing.
reduced, supply, shortage
Government imposed BLANK and BLANK are two ways that they can affect supply and shift the supply curve to the left.
regulations, AND taxations
When the supply of smart phones rises the supply curve shifts to the BLANK .
right
When the supply of smart phones rises the supply curve shifts to the BLANK.
right
A measure for the gain that BLANK obtain from selling a good or service at the equilibrium price is called BLANK surplus.
sellers, producers or suppliers; producer surplus
Governments can establish price floors for agricultural products whereby the government intervenes not only to BLANK the control prices but also to buy or BLANK quantities of the good for which a price floor is established.
set, establish, determine sell
A ______ the supply curve represents a change in supply while a ______ the supply curve represents a change in the quantity supplied. Multiple choice question. shift of; movement along rotation of; movement along movement along; rotation of movement along; shift
shift of; movement along
A change in supply is represented by a ______ the supply curve while a change in quantity supplied is represented by a _______ the supply curve. Multiple choice question. movement along; movement along shift of; shift of movement along; shift of shift of; movement along
shift of; movement along
A ______ the supply curve represents a change in supply while a ______ the supply curve represents a change in the quantity supplied. Multiple choice question. shift of; movement along movement along; shift rotation of; movement along movement along; rotation of
shift of; movement along A change in supply reflect a shift of the supply curve due to a determinant of supply. A change in quantity supplied results from a change in price reflected as a movement along the supply curve.
A change in supply is represented by a ______ the supply curve while a change in quantity supplied is represented by a _______ the supply curve. Multiple choice question. shift of; movement along movement along; shift of movement along; movement along shift of; shift of
shift of;movement along change in supply is the shift the quantity supplied/price is the movement along
A price floor creates excess ______ Multiple choice question. equilibrium uncertainty demand supply
supply
Improvements in technology are a determinant of ______. Multiple choice question. revenue supply demand quantity supplied
supply
Improvements in technology are a determinant of ______. Multiple choice question. supply demand quantity supplied revenue
supply
Which of the following is not a determinant of supply? Multiple choice question. Technology The price of the good Future price expectations The prices of factors of production
the price of the good
Among the other things being equal are: Multiple select question. the prices of substitute products expectations as to future prices the price of the product production costs the state of technology the quantity of the product
the prices of substitute products expectations as to future prices production costs the state of technology
True or false: Resource costs or changes in these costs to production are responsible for shifts in the supply curve. True false question. True False
true. Input costs are a major factor that affects the supply of a good or service and will shift the supply curve.