Supply/Demand
Supply/Demand
Business Organizations
Market Structures
100
The Law of Demand states:
As price decreases, quantity demanded increases
100
The Law of Supply states:
An increase in prices will increase the quantity supply of a good
100
What is the definition of a sole proprietorship?
someone who owns an unincorporated business by himself or herself
100
What is an example of a business representing perfect (pure) competition?
Gas stations, milk, eggs
200
When the income in households increase, what will happen to the demand curve?
The demand curve will shift to the right
200
What is an example of a substitute good?
-Coke and Pepsi
-iPhone and Android
-Kroger and Publix
200
What is the definition of a partnership?
relationship existing between two or more people who join to run a business.
200
Fast food restaurants such as McDonald's, Burger King, and Chick-Fil-A have plenty of competition. Their products are similar and advertising is needed because of the competition. What market structure does this represent?
Monopolistic Competition
300
What is an example of a price ceiling?
-Rent control and prices on insulin
-Maximum price on a good
300
What is an example of a price floor?
-Minimum Wage
-Minimum price on a good
300
A key advantage of a corporation is
There is limited liability of the company
300
In the US economy, a few firms dominate the wireless telephone provider industry. Which type of market structure does this represent?
Oligopoly
400
If the price of peanut butter goes up, what happens in the market for jelly? Does supply or demand change? How?
Demand decreases
400
An increase in the price of coffee is likely to be paired with a(n) ___________________ in the demand for tea
Increase because they are substitutes
400
Jane and Jill run a photography business as a partnership. They are trying to decide if they wish to form a corporation. If they decide to incorporate, what will be a new disadvantage they will come across
Double taxation
400
What is NOT a typical type of market structure?
Monopoly
500
Explain what is happening in the graph
Demand is decreasing
500
If LeBron James did advertisements for Gatorade, this would cause the ___________ curve for Gatorade to shift ____________.
Demand; Right
500
What is a disadvantage of a partnership?
Share profits and potential for owner conflict
500
What is an example of a monopoly in our economy? How is it a monopoly? Who are their competitors?
Google and Amazon.
-Google has many tools and applications such as Google Chrome, Google Drive, Gmail, Google Docs and more. Their competitors are Microsoft and Yahoo.
-Amazon runs the online shopping market. Their competitors are Walmart and eBay.