Podcast
Questions and Answers
What happens to price when there is a shortage of a product?
What happens to price when there is a shortage of a product?
- It increases (correct)
- It decreases
- It fluctuates randomly
- It remains the same
What effect does an increase in consumer income have on demand?
What effect does an increase in consumer income have on demand?
- It has no effect on demand
- It increases demand (correct)
- It decreases demand
- It increases supply
What happens to equilibrium price and quantity when both demand and supply increase?
What happens to equilibrium price and quantity when both demand and supply increase?
- Price and quantity both decrease
- Price and quantity both increase
- Price decreases, quantity increases
- Price increases, quantity may increase or decrease (correct)
What happens to price when there is excess demand in a market?
What happens to price when there is excess demand in a market?
In a market with perfectly elastic demand, how does a change in price affect quantity demanded?
In a market with perfectly elastic demand, how does a change in price affect quantity demanded?
What is the likely effect of a decrease in production costs on equilibrium price and quantity in a competitive market?
What is the likely effect of a decrease in production costs on equilibrium price and quantity in a competitive market?
What does the supply schedule graphically represent?
What does the supply schedule graphically represent?
What is the economic model of price determination in a market based on?
What is the economic model of price determination in a market based on?
What does the aggregate demand-aggregate supply model depict in macroeconomics?
What does the aggregate demand-aggregate supply model depict in macroeconomics?
What does the supply and demand model postulate about a competitive market?
What does the supply and demand model postulate about a competitive market?
What forms the theoretical basis of modern economics?
What forms the theoretical basis of modern economics?
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