Understanding Weight Gain

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According to the text, what happens when there is a shortage in the market for coffee?

Buyers lower their prices

Buyers raise their prices

Sellers raise their prices (correct)

Sellers lower their prices

At the equilibrium price of $4 per pound, how many pounds of coffee would be demanded per month?

15 million pounds

35 million pounds (correct)

25 million pounds

5 million pounds

What happens when there is a surplus in the market for coffee?

Sellers raise their prices

Buyers lower their prices

Sellers lower their prices (correct)

Buyers raise their prices

According to the text, what happens to the demand curve when there is a reduction in price?

The demand curve does not shift Signup and view all the answers

What does a surplus represent in the market?

The quantity supplied exceeds the quantity demanded at the current price Signup and view all the answers

What is the equilibrium price in the market for coffee according to the text?

$6 per pound Signup and view all the answers

What happens to prices in a market when demand and supply curves shift?

Prices remain the same Signup and view all the answers

According to the text, what happens to the equilibrium price if the demand curve shifts farther to the left than the supply curve?

The equilibrium price will be lower than it was before Signup and view all the answers

What happens to the equilibrium price if the shift to the left of the supply curve is greater than that of the demand curve?

The equilibrium price will be higher than it was before Signup and view all the answers

What happens to the equilibrium price if both the demand and supply curves shift to the left by the same amount?

The equilibrium price will remain unchanged Signup and view all the answers

What happens to the equilibrium quantity when both the demand and supply curves shift to the left?

The equilibrium quantity decreases Signup and view all the answers

According to the text, what happens to the equilibrium price and quantity of peas demanded and supplied when there is a decrease in supply?

The equilibrium price rises and the quantity demanded decreases Signup and view all the answers

According to the text, what happens to the equilibrium price and quantity of coffee demanded and supplied when there is an increase in supply?

The equilibrium price falls and the quantity demanded increases Signup and view all the answers

According to the text, what happens to the equilibrium price and quantity of coffee demanded and supplied when there is a decrease in demand?

The equilibrium price falls and the quantity supplied decreases Signup and view all the answers

According to the text, what happens to the equilibrium price and quantity of coffee demanded and supplied when there is an increase in demand?

The equilibrium price rises and the quantity supplied increases Signup and view all the answers

According to the circular flow model, which of the following statements is true?

Firms supply goods and services to households. Signup and view all the answers

What is the purpose of the circular flow model?

All of the above. Signup and view all the answers

What do factor markets refer to in the circular flow model?

Markets where households demand factors of production from firms. Signup and view all the answers

How does the demand and supply model relate to the circular flow model?

The demand and supply model shows the interaction of households and firms in the circular flow of economic activity. Signup and view all the answers

According to the law of supply and demand, what happens to supply and demand when the price of a resource, commodity, or product increases?

Supply rises while demand declines Signup and view all the answers

What is the equilibrium price in a market?

The price at which demand equals supply Signup and view all the answers

What is price elasticity of demand?

The degree to which price changes affect the demand for a product Signup and view all the answers

What factors can shift the supply or demand curves in a market?

Taxes and government regulation, market power of suppliers, availability of substitute goods, and economic cycles Signup and view all the answers

According to the law of demand, what happens to the level of demand as the price of a product increases?

The level of demand decreases Signup and view all the answers

What are Giffen goods?

Goods that see an increase in demand when incomes rise Signup and view all the answers

What are Veblen goods?

Goods that are considered luxury goods Signup and view all the answers