Economics: Supply and Demand Open Note Quiz
If corn shortages cause corn to go up in price, then any product that uses corn as an input will...
Increase in price
Over the past two years there have been significant droughts that have led to reduced corn crops. As a result, the supply curve for corn has shifted to the ___ ending up in ___ prices
Left, Higher
The point where supply and demand intersect is called equilibrium, or the...
Market Clearing Point
Another name for equilibrium is the...
Market clearing price
Like demand, supply can be INELASTIC. In other words, if the price of the product changes, the firm cannot increase the quantity supplied very much to meet consumer demand. Which of the following would represent in INELASTIC product?
Picasso Paintings (He died in 1973)
Supply and price have direct or ___ relationship.
Positive
When a war breaks out in the Middle East and the global supply of oil decreases, the price of gasoline in the Untied States...
Goes Up
A farmer currently grows peppers and has 1 acre allocated towards this crop. The farmer finds out that the market price for lb. of peppers has increased from $1.49 to $5.99. Why would the farmer's output of the peppers be considered inelastic?
He would have to grow more plants to produce more peppers and he cannot do that
All of the following could potentially shift the supply curve EXCEPT...
Number of sellers
The number of producers in the compact disc market have reduced because CDs are not as profitable. This represents which of the following determinants of Supply?
Number of sellers
A football stadium is said to have inelastic supply. Why would this be a true statement?
Once the tickets are sold out, the supplier can no longer increase the quantity supplied to meet consumer demand
Supply and demand ultimately determine the ___ equilibrium and ___ equilibrium of a product
Quantity, Price
If the price of the good is too low, then the supplier will end up with a..
Shortage
What will MOST likely happen when the price a good is sold for increases?
A production incentive for the good is created
People decide to escape cold weather in New York and travel the Caribbean. How would this affect the price of hotel rooms in the Caribbean?
Cold weather in New York drives the demand up and the price increases for hotel rooms in the Caribbean
A shift to the left in the supply curve indicates a ___ in supply while a shift to the right indicates a ___ in supply
Decrease, Increase
At the equilibrium, the quantity of products buyers are willing and able to buy ___ balances the quantity that sellers are willng and able to sell.
Exactly
A situation where there is more QD and QS is referred to as...
Excess Demand
A situation where there is more QS than QD is referred to as...
Excess Supply
The original Nokia was a popular phone. As a result of the increase in popularity of smartphones what should happen to the price of the original basic Nokia?
Fall
If the demand for a product increases what will happen to the market price and quantity?
Rise
Government often times will pay into businesses in order o keep them operating. Historically, farmers have received this type of government support which caused an increase in supply. This represents which of the following determinants of supply?
Subsides
The "stuff" that sellers are willing and able to sell is known as...
Supply
A table that shows the relationship between the price of a good and how much a supplier is willing to sell is the...
Supply Schedule
In most market based economics, surpluses and shortages are only temporary because of...
Supply and Demand
What happens to the market for oranges when a cold snap hits Florida?
Supply goes down and prices go up
If all prices are above the equilibrium point (too high) then the supplier will end up with a...
Surplus
A focal grocery store orders 200 cases of Pepsi each week and sells them at a price of $6.00 per case. At the end of the first week, they have only sold 160 cases. What economic situation is the grocery store facing and what will have to happen to price in order for equilibrium to be attained?
Surplus; price will fall
Unlike the demand curve, the supply curve slopes...
Upward