Economics Test 1 Quiz Reviews
Means that price has changed and there is movement along the demand curve
A change in demand means there has been a shift in the demand curve, and a change in quantity demanded
Positive
A good is normal if the sign on the income elasticity formula is
Decrease and quantity to decrease
A leftward shift to the market demand curve for HDTV's ceteris paribus causes equilibrium price to
The quantity demanded equals the quantity supplied
A market is said to be in equilibrium when
Higher equilibrium quantity
A rightward shift in a demand curve and a rightward shift in supply curve both result in a
A shift outward of the production possibilities curve
A technological advance would best be represented by
Has a negative slope
According to the law of demand, a demand curve
Increases as its price falls, ceteris paribus
According to the law of demand, during a given period of time, the quantity of a good demanded
Decrease and the equilibrium quantity of ice cream to increase
Assume milk is used to produce ice cream. Ceteris Paribus, a decrease in the price of milk will cause the equilibrium of ice cream to
Decrease and the equilibrium quantity of jelly to decrease
Assume peanut butter and jelly are complements. Ceteris paribus, an increase in the price of peanut butter will cause the equilibrium price of jelly to
Price elasticity of demand should become larger
Ceteris Paribus, as the number of substitutes for a good increases, the
A decrease in the demand for airline tickets
Ceteris Paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be
A decrease in the quantity demanded of digital cameras
Ceteris Paribus, if the price of a digital camera rises, then we can expect
A decrease in the supply of corn syrup
Ceteris Paribus, if the subsidies given to corn syrup producers decrease, then we can expect
More elastic the demand for the good
Ceteris Paribus, the longer the time period, the
An increase in the cost of materials used to produce skateboards
Ceteris Paribus, which of the following is most likely to cause a decrease in the supply of skateboards
An increase in consumers income
Ceteris Paribus, which of the following would generally cause an increase in the demand curve for new automobiles
How much sellers will increase production in response to a change in price
Elasticity of supply tells us
3.5 percent for each 1 percent decrease in price, ceteris paribus
For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by
Opportunity costs are experiences whenever choices are made
Given that resources are scarce
A decrease in the demand for bagels
If bagels and doughnuts are substitutes, then a decrease in the price of doughnuts will result in
The elasticity number E is greater than 1
If demand is elastic then
An increase in price will reduce total revenue
If demand is elastic, then
An inferior good
If income rises by 10 percent and the quantity sold of a particular vehicle falls by 7 percent, then this particular type of vehicle is
Production of nonmilitary goods will decrease
If north korea is currently producing at efficiency and it proceeds to increase the size of its military, then as long as nothing else changes its
The percentage change in quantity demanded is greater than the percentage change in quantity demanded
If the demand for a product is elastic then
The demand is inelastic
If the price elasticity of demand for cigarettes is 0.4
0.5
If the price increases by 10%, and the quantity demanded falls by 5%, the absolute value of the price elasticity will be
The goods are substitute goods because the cross-price elasticity is +2
If the price of Coke rises by 5% and the sales of Pepsi go up by 10%, we can conclude that
That price is less than the equilibrium price
If there is a shortage at a given price then
Responsive the quantity demanded is to a change in price
Price elasticity of demand shows how
Negative
Smart phones and apps are complementary goods. The cross price elasticity of demand between smart phones and apps is expected to be
6.3
Suppose computer prices at an office supply store fall from $1000 to $900 and as a result the quantity demanded of typewriters decreases from 40 to 20 per month. The cross price elasticity of demand is closest to
The limitations that exist because of scarce resources
The PPC illustrates
The activity that is the best alternative use of your time
The opportunity cost of studying for an economics test is
The water used to make a soft drink
Which is the best example of land
more teenagers enter the labor force
Which of the following events would allow the production possibilities curve to shift outward
The economy is producing on the PPC
Which of the following is true when an economy is producing efficiently
A decrease in the size of the labor force
Which of the following will cause the PPC to shift inwards
