Micro Econ - Supply and Demand
Nearly all supply curves share a basic similarity. They slope...
up from left to right
Which of the following will shift the supply curve to the left
An increase in the price of inputs to production
If a technology change reduces a company's production costs, it will...
Shift supply curve to the right
Good weather and heavy winter rain increases the supply of agricultural products. This means that at any given price, a higher quantity will be supplied. Conversely, a drought would shift the
Supply curve to the left
If supply falls and demand remains constant, once the market has adjusted to its new equilibrium there will be
fewer transactions, and they will take place at a higher price.
A change in technology that reduces the costs of production will
shift the supply curve to the right
A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of
the supply curve
Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a rightward shift of
the supply curve
At a price of $13, quantity demanded is ________, quantity supplied is ________, therefore excess ________ has occurred.
45; 27; Excess Demand
The conditions of demand and supply are given in the table below. What is the equilibrium quantity?
7,500
Which of the following will shift the supply curve to the right?
A decrease in the price of inputs to production.
When ________, business firms will collectively supply a higher quantity of output at any given price, and the supply curve will shift to the right.
Costs of production fall
When the price of a particular good increases
Demand for complementary good falls AND
When the actual price in some market is above the equilibrium price, the resulting market condition is known as
Excess supply
Which of the following statements describe(s) a free market?
Government does not intervene in any way
According To The Law Of Demand, Assuming Other Factors Are Held Constant as...
NOT The price of bread increases, the quantity of bread demanded will increase
An increase in the quantity supplied can be the result from
NOT an increase in supply
If an increase in the price of Nike shoes increases the demand for Adidas shoes, this means that
Nike shoes and Adidas shoes are substitutes
If demand deceases and supply remains constant, what happens to the market equilibrium?
Quantity rises and price falls
In order to deal with a budget deficit, the city of Portland reduces its subsidy of doughnut shops. What happens in the market for doughnuts in Portland?
The equilibrium quantity falls; doughnut prices rise.
Information campaigns about tobacco hazards and taxes on tobacco are two ways to discourage its use. Which one decreases demand for smoking?
The information campaign on hazards of tobacco
When quantity demanded decreases in response to a change in price
There is a movement from one point to another along the demand curve
An decrease in the quantity supplied can be the result from
a decrease in price
When economists talk about supply, they are referring to a relationship between the price in a market and the
amount that producers collectively make available for sale.
The law of demand states that as the price of a good decreases
buyers desire to purchase more of it
If demand falls and supply remains constant, once the market has adjusted to its new equilibrium there will be
fewer transactions, and they will take place at a lower price
Decreased competition due to fewer producers in a market will cause
higher prices due to an decrease in the quantity supplied at every price.
Complete the following sentence: If people think that the price of electronics will increase in the near future, that belief may cause a(n) Group of answer choices
increase in the demand for electronics today
What would cause the level of demand (meaning the relationship between price and quantity demanded) to shift?
population grows in a particular market area
A demand curve shows the graphical relationship between quantity demand and
price
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the
the law of demand
When higher prices result in a lower quantity demanded, economists call this relationship
the law of demand
In a planned economy, government determines the prices for goods and services, and
what goods will be produced
In a planned economy, government determines what can be produced and
what prices will be charged
