Microeconomics: Supply, Demand, and Price

The graph shows a demand curve. https://gyazo.com/fbba9cb57298ac6506f2445fdcde1a33 Which most likely accounts for the changes shown on the demand curve? More consumers want a product. Fewer consumers want a product. The price of a product rises a little. The price of a product rises sharply. Submitted

a. More consumers want a product.

This graph shows a supply curve. https://gyazo.com/837e97c53975a6623caa66c25c542c8a What happens when the price of a good increases? The quantity of goods that are produced increases. The producer of the good is certain to make less money. The quantity of goods that are produced decreases. The quantity of goods that are produced stays about the same.

a. The quantity of goods that are produced increases.

On a graph, an equilibrium point is where a supply curve and a demand curve meet. a supply curve is higher than a demand curve. the supply and demand curves head up. the supply and demand curves head down.

a. a supply curve and a demand curve meet.

The law of demand applies most directly to which group? buyers sellers producers lawmakers

a. buyers

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded? excess supply stable prices exact equilibrium increased production

a. excess supply

Consumers create demand for goods and services. sales and low prices. goods and income. services and low prices.

a. goods and services.

Supply and demand coordinate to determine prices by working together. competitively. with other factors. separately.

a. together.

The amount that a good is sold for is its elasticity. price. profit. supply.

b. price.

Which best explains how the law of demand affects consumers? It helps consumers know when prices are going down. It helps consumers know when prices are going up. It helps consumers tell producers when prices are too high. It helps consumers tell producers when to make new goods.

c. It helps consumers tell producers when prices are too high.

A builder must build fifty houses by the end of the year but he has run out of available land. Which best describes the builder's supply of houses? elastic competitive inelastic profitable

c. inelastic

All things being equal, when producers sell goods for a lower price, they make more money. the same amount of money. less money. as much money as the law allows.

c. less money.

Which occurs during market equilibrium? Check all that apply. Supply and demand meet at a specific price. Supply is slightly greater than demand. Supply and demand meet at a specific quantity. Supply and demand meet at a demand point. Supply and demand meet at a supply point.

NOT these 3 combined c. Supply and demand meet at a specific quantity. d. Supply and demand meet at a demand point. e. Supply and demand meet at a supply point.

The graph shows a point of equilibrium. https://gyazo.com/5b3b3bc8246635f4814ce6e38b6362af How many goods must be supplied to achieve equilibrium? 15 20 25 30

a. 15

The graph shows excess demand. https://gyazo.com/84f328855bd8ba2850a258bcb58ebd05 Which explains why the price indicated by p2 on the graph is lower than the equilibrium price? As prices fall, quantity demanded goes up. As prices fall, quantity demanded goes down. As prices fall, quantity demanded stays the same. As prices fall, quantity demanded disappears. Submitted

a. As prices fall, quantity demanded goes up.

The graph shows a demand curve. https://gyazo.com/457cdc96fdc241ab979b265ff78be7c6 What changes does the graph show? an increase in demand a decrease in demand a stable demand and an increase in price a decrease in both the quantity demanded and the quantity supplied

b. a decrease in demand.

Both excess supply and excess demand are a result of equilibrium. disequilibrium. overproduction. elasticity.

b. disequilibrium.

According to the law of demand, as prices decrease, demand decreases. increases. stays the same. disappears.

b. increases.

A factor that most influences changes in consumer demand is quantity. price. quality. competition.

b. price.

A demand curve shows how changes in consumer demand affects income. prices affect the consumer demand. prices affect complementary goods. consumer demand affects substitute goods.

b. prices affect the consumer demand.

Disequilibrium occurs when quantity supplied is equal to quantity demanded. quantity supplied does not equal quantity demanded. supply coordinates with price. supply coordinates with quantity.

b. quantity supplied does not equal quantity demanded.

The graph shows a point of equilibrium. https://gyazo.com/883bd43826f8936877cae5f4ef6ca06c What does "P" represent on the graph? the point where equilibrium is achieved the price at the equilibrium point the average price of goods sold the point where supply and demand drop

b. the price at the equilibrium point

Consumer demand is defined as how frequently the prices change. the willingness and ability people have to buy a good. how frequently the people are willing pay for something. how often people want something delivered.

b. the willingness and ability people have to buy a good.

Maria purchases a premium brand of coffee at the grocery store for $8. Which would be considered a substitute good? a coffee pot a bottle of coffee creamer a lower-priced brand of coffee a pound of sugar

c. a lower-priced brand of coffee

Read this scenario and answer the question that follows it. Sample scenario: A factory produces blue and green widgets, both at equal production costs. In one day, the factory can make 20 widgets of either color. The factory has been making 10 blue and 10 green widgets per day because they both sell for $5.00. Recently, the price of blue widgets has increased from $5.00 each to $8.00 each. How does the law of supply say the factory will respond to the increase in the price of blue widgets? by increasing the number of green widgets supplied by not changing the number of blue widgets produced by increasing the number of blue widgets supplied by decreasing the number of blue widgets supplied

c. by increasing the number of blue widgets supplied

In order to compete successfully, a producer must produce goods that are more expensive than those of competitors. of a lesser quality than those of competitors. of a higher quality than those of competitors. created without worrying about the costs of production.

c. of a higher quality than those of competitors.

A supply schedule shows how prices affect the quality of a good. overall economy of a country. quantity of a good supplied by a producer. unemployment rate.

c. quantity of a good supplied by a producer.

The law of supply demonstrates the behaviors of producers when they change their company's name. decide to hire fewer workers. supply goods to consumers. launch a new marketing campaign.

c. supply goods to consumers.

The law of supply states that as the price of a good rises, the quantity supplied of that good disappears. decreases. remains the same. increases.

d. increases.

A limited amount of goods available means that excess _____ is occurring.

demand.

The amount of a good or service available in a market at a given price is known as ________.

supply