Practice Quiz 2 – Flashcards
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For most products, purchases tend to fall with decreases in buyers' incomes. Such products are known as:
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Normal goods
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Over a period of time, the equilibrium price of a good increases and the quantity decreases. All of the following could account for this situation, except:
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A decrease in the price of an alternative good or service that producers could also produce
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An increase in the price of digital cameras will result in a(n):
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Movement up and to the left along the demand curve for digital cameras
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A decrease in the price of digital cameras would lead to a(n):
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Increase in the price and quantity sold of memory cards
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The scalping of tickets for an event is a sign that the stated price on the ticket is:
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Below the market clearing price
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If a competitive market were allowed and developed for human organs, then the price for organs would:
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Increase and the quantity of organs available would increase
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"Price" in the statement of the Law of Supply refers to:
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The dollar amount necessary to induce a change in the quantity of a good supplied to the market.
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When central planners in a command economy end up having a huge surplus of shoes and widespread shortages of bread in their economy, they have failed to attain:
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Allocative efficiency
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Which of the following statements about ticket scalping is correct?
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The existence of a scalpers' market could mean that the event sponsors/organizers are getting lower sales revenues that what they could have gotten at equilibrium
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What would best explain why the equilibrium price of pink salmon decreased and the equilibrium quantity increased?
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The decrease in demand was greater than the decrease in supply
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Picture a competitive market with the usual upsloping supply curve and downsloping demand curve. If the current price is creating a shortage, then market forces will cause the price to adjust and:
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Quantity supplied will increase
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There is a shortage in a market for a product when:
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Quantity demanded is greater than quantity supplied
