Elasticity of Supply and Demand
Define elasticity
How responsive quantity is to a change in price
What is a supply shift?
A change in quantity supplied, independent of price
What is a demand shift?
A change in quantity demanded, independent of price
What does efficiency mean in economics?
That goods are being created with as little waste as possible
What year did TikTok launch in the US?
2016
What does relatively elastic demand look like on a graph?
A very shallow slope.
What does a decrease in supply look like on a graph?
A shift to the left
What does an increase in demand look like on a graph?
A shift to the right
Define allocative efficiency
State of the economy in which production represents consumer preferences
Which ocean covers nearly 1/3 of the Earth's total surface and includes the deepest ocean trench?
The Pacific Ocean
What does perfectly inelastic supply look like on a graph?
A line going straight up
A natural disaster would be which type of supply shift?
Left shift
A rise in consumer income would lead to which type of demand shift?
Right shift
Define productive efficiency
The idea that products are being made at the lowest possible cost
How old is Patrick Levon Mahomes the III?
29
Would an airplane have a relatively elastic or inelastic supply?
Inelastic
What happens to EqP and EqQ when supply shifts right?
EqP Decrease
EqQ Increase
What happens to EqP and EqQ after a leftward demand shift?
EqP Decrease
EqQ Decrease
How do markets create efficiency?
They allow producers and consumers to settle on an equilibrium price between what consumers are willing to pay and what producers are willing to sell for
What three dimensional shape has 12 edges, all of equal length?
A cube
Is gasoline an example of elastic or inelastic demand?
Give an example of a scenario that would lead to a rightward shift in supply
(Mr. Hoyt will decide if your example is good)
Give an example of a scenario that would lead to a rightward shift in demand
(Mr. Hoyt will decide if your example is good)
What happens when a good is sold for less than it's equilibrium price?
There will be a shortage of that good
What is the deepest freshwater body of water in all of the United Kingdom?
Loch Ness