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

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