If California has a drought, does the supply of water increase or decrease?
Decrease.
100
If the price of iPhones drops, does demand increase or decrease?
Increase.
100
Buying an apple from the grocery store.
Good.
100
Used clothing.
Inferior good.
100
Total revenue - total cost
What is profit?
200
If the government decides they will pay wheat farmers $10,000 each, what will happen to the supply of wheat?
It will increase.
200
If the demand for peanut butter drops, what will happen to the demand of jelly. (Hint: think about compliments).
Demand will decrease.
200
Getting your nails done at the salon.
Service.
200
A BMV convertible.
Luxury good.
200
If Katies total cost is higher than her total revenue, is she making a profit?
No
300
If there is an oil spill in the ocean, what will happen to the price of oil?
It will increase.
300
If Honda has to recall 20,000 new cars for manufacturing issues, what will happen to demand.
Demand will decrease.
300
Buying a video-game at GameStop.
Good.
300
A coffee from Starbucks.
Normal good.
300
If revenue - cost = -30, did I make a profit?
No
400
What is one determinant of supply?
Consumer preferences, price, expectations, price of related goods, etc.
400
If demand decreases, and supply increases, what will happen to price?
Price will decrease.
400
Buying a shirt at Tillys.
Good.
400
Public transportation.
Inferior good.
400
If cost goes down, what will happen to profit?
Profit will increase.
500
The higher the price, the higher the supply.
Law of supply.
500
The higher the price, the lower the demand.
Law of demand.
500
Hiring a DJ at your birthday party.
Service.
500
Vans shoes.
Normal good.
500
If Jamie sells lemonade for 25 cents a cup, and it costs him 15 cents to make one cup, how much is his profit if he sells 5 cups in one day. (Hint: find the profit for one cup and multiply by 5).