Supply and Demand
Elasticity
Government Intervention
Taylor Swift or Beyonce?
100
In the market for coffee, coffee is a normal good and incomes increase. This leads to a _______ (supply or demand) _______ (increase or decrease).
Demand increase
100
When the price of computers decreases by 10 percent, the quantity demanded of computers increases by 25 percent. Therefore, computers are an ___________ (elastic or inelastic) good.
Elastic
100
The maximum price a good can legally be sold at is known as a _________ ___________.
Price ceiling
100
It's me / Hi / I'm the problem, it's me
Taylor Swift
200
What happens to equilibrium price and quantity in the market for paper when lumber prices increase?
P increase, Q decrease
200
When income of consumers increases by 5%, the quantity demanded of a good decreases by 10%. We can say that the good is an _________ (normal or inferior) good.
Inferior
200
True or false: if P2 represents a price ceiling, the price ceiling is binding and market will not reach equilibrium.
False
200
I could have another you in a minute /
Matter fact he'll be here in a minute, baby
Beyonce
300
Due to a demand increase, the total surplus of a market will __________.
Increase
300
True or false: at price A, if a firm increases the price of their good, they will increase their total revenue.
False
300
Assume that the supply of wheat is relatively price inelastic, while the demand for wheat is relatively price elastic. True or false: the tax burden falls more on suppliers.
True
300
Devils roll the dice / angels roll their eyes
Taylor Swift
400
In the market for batteries, consumers expect lower future prices while the number of producers increases. What happens to equilibrium price and quantity?
P decrease, Q ambiguous
400
The price of a good goes from $20 to $18. Meanwhile, the quantity increases from 15 to 25. We can say that this good is an __________ (elastic or inelastic) good.
Elastic
400
If the government implements a tariff on cheese, what happens to the equilibrium price paid by domestic consumers and quantity of cheese consumed by domestic consumers?
P increase, Q decrease
400
It's a little too late for you to come back /
Say, it's just a mistake, think I'd forgive you like that /
If you thought I would wait for you /
You thought wrong
Beyonce