Demand and Supply Chapter
18 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a competitive market?

  • A market with only one buyer and one seller
  • A market with many buyers and many sellers (correct)
  • A market with no sellers
  • A market with a fixed price

    • What is the relative price of a good?

  • The ratio of its money price to the money price of the next best alternative good (correct)
  • The total cost of production
  • The amount of money needed to buy it
  • The profit of the seller

    • What are the three conditions for demanding something?

  • Need it, can afford it, and can produce it
  • Want it, need it, and can produce it
  • Want it, can afford it, and have made a definite plan to buy it (correct)
  • Want it, need it, and can sell it

    • What is the main tool of economics that explains how prices are determined and how they guide the use of resources?

    <p>The demand and supply model</p> Signup and view all the answers

    What is the money price of a good?

    <p>The amount of money needed to buy it</p> Signup and view all the answers

    Why do prices of goods and services rise and fall?

    <p>Because of changes in demand and supply</p> Signup and view all the answers

    What happens to the supply curve when there is an advance in technology?

    <p>It shifts rightward</p> Signup and view all the answers

    What is the situation in which the quantity demanded equals the quantity supplied?

    <p>Equilibrium</p> Signup and view all the answers

    What is the result of a natural disaster on the supply curve?

    <p>It shifts leftward</p> Signup and view all the answers

    What is the purpose of price in a market?

    <p>To regulate buying and selling plans</p> Signup and view all the answers

    What happens to the supply curve when the price of the good changes?

    <p>There is a movement along the curve</p> Signup and view all the answers

    What is the equilibrium quantity?

    <p>The quantity bought and sold at the equilibrium price</p> Signup and view all the answers

    What happens when the price of a good is above the equilibrium price?

    <p>A surplus occurs, forcing the price down</p> Signup and view all the answers

    What is the result of an increase in demand?

    <p>The demand curve shifts rightward</p> Signup and view all the answers

    What happens when the quantity supplied equals the quantity demanded?

    <p>The price is at equilibrium</p> Signup and view all the answers

    What is the result of a surplus of a good in the market?

    <p>The price falls</p> Signup and view all the answers

    What occurs when the price of a good is below the equilibrium price?

    <p>A shortage occurs, forcing the price up</p> Signup and view all the answers

    What is the state of the market when the quantity supplied equals the quantity demanded?

    <p>Equilibrium</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser