College Economics Supply and Demand – Flashcards
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Demand curves are negatively-sloped primarily becasue people
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C) use goods that rise in price less and expand the uses of goods for which relative price falls
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The maximum quantities of a good that people are willing and able to buy at varouis market prices during a given period are depicted by
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B) an increase in price
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What can cause an entire demand curve to shift
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D) a change in demographics
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The market demand curve for Homel's canned Spam ( a processed pork product that is an inferior good for most people), would shift rightward as a consequence of major increase in
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C) the price of the hamburger meat
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People tend to find more ways to use a good if the
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D) pric is reduced
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Substitute goods are
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D) replacement for one another
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A decrease in the price if vanilla ice cream is likely to increase the demand for
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B) chocolate syrup
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When kids abandon a short-loved fad for dinosaurs action figures, this would be shown by a
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A) let shift of the demand curve
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If the price of hot dog increases, you would expect the demand for
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E) buns to decrease
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For normal goods and luxuries, decreases in income tend to cause
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B) a decrease in demand for the good
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Lobster is a normal good and peanut butter is a inferior good. If your income rises you will probably consume
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D) more lobster and less peanut butter
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On average Americans families with more income tend to have fewer children than families with less income. This fact suggest that at least from a purely statistical perspective, an American children are
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D) inferior goods
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The law of supply states that other things equal
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C) quantity supplied is positively related to price
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Positively slope supply curves show relationship that
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B) are positive between price and the amount sold
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An increase in quantity supplied would be shown graphically as a
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A) movement along a supply curve
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Expectations of price hikes for a durable good tend to
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E) all of the above
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A short run movement in this figure of the supply curve form S0 to S1 for this durable good might result fro a decline in
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D) producers expectation about future out out prices
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One possible reason why this supply curve of lumber shifted might be
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D) producer's expectations of a price decline because new construction is slowing
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In a competive marketer economy most prices
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C) acts as signal between buyers and sellers
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Equilibrium market prices exist only when
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A) quantity demanded equals quantity supplied
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At the price P1 the quantity sold, if enough time fish wee a aisle would be
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A) P2 and Q3
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At the price P1 the quantity sold if enough fish were available would be
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D) Q5
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If the price of fish is initially at P1 it will
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A) rise becasue of excess demand
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If the price of fish is initially at P2 it will
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B) stay at this equilibrium level
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The equilibrium price of fish could move to P3 if
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A) demand increase
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What is the relation shot between quantity demand and quantity supplied at equalibram
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The realtionship between quantity demanded and quantity supplied at equilibrium is that the quantity demand will be equal to the quantity supplied
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What is the realtionship when there is a shortage
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That quantity demand is higher then quntity supplied
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What is the realtionship when there is a surplus
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That quantity supplied is higher then quantity demand
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What is the difference between the demand an quantity demanded of a product say milk? Explain in words and show the difference on a graph with a demand curve for milk
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Demand is movement along the demand curve and quantity a whole new demand curve. For example with milk if the demand for increases that would creat a whole née demand curve, because milk could have grown more expensive in price or decreased in price. Which quantity demand milk is Justus moving along the demand curve because it is a change in consumtion.
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