Microeconomics

Supply & Demand

100

An increase in supply changes quantity and price in which way?

Q Up P Down

200

______ along the supply curve or changes in quantity supplied are driven by price changes.

What is Movement.

300

The ______ illustrates the combined quantity supplied by all consumers in the market at specific prices.

What is Supply Curve.

400

Table of data often used to build the demand curve

What is a demand schedule?

500

The positive relationship between price and quantity supplied (all other things being constant).

What is Law of Supply

Government Intervention

100

A price floor typically results in a 

What is surplus

200

Draw an accurate subsidy diagram

Supply shifts right

300

Draw a % tax diagram

Rotation of supply curve

400

Government intervention always results in

What is Dead Weight Loss

500

Draw a price ceiling diagram indicating how community surplus has changed with the implementation of the price ceiling

Diagram

Market Structures

100

Only 1 producer

Monopoly

200

When producers in an oligopoly work together to control prices it is called this

What is collusion/price fixing

300

Types of products in a perfectly competitive structure

What is identical?

400

This is the difference between perfect competition and monopolistic competition

Differentiated products in monopolistic comp.

500

Provide an example of a company that fits each of the 4 types of market structures

Monopoly

Oligopoly

Monopolistic Competition

Perfect Competition

Market Failures

100

This is why public goods are considered a market failure

What is the free rider problem?

200

Using economic terminology, this is the difference between a public good and a common pool resources

Public Goods: Non-Excludable & Non-Rivalrous

CPR - Non-Excludable & Rivalrous

300

Draw an accurate positive externality of production diagram

Diagram

400

Provide 3 examples of a potential fix for a negative externality of consumption

What is tax the good, ban the good, pass legislation, etc.

500

Evaluate the use of government legislation to correct a negative externality of production

Pros/Cons

Impacts on stakeholders

Short-run vs. long-run

Elasticity

100

When demand is price _____, an increase in price results in a decrease in total revenue.

What is Elastic

200

Consumer _______ is the difference between what a consumer is willing to pay and the market price of a good.

What is Consumer Surplus

300

A steep demand curve indicates that the product is this type of elastic

What is inelastic

400

Mr. Knecht starts a economics tutoring business. He's a bit greedy so he decides to raise the price $60 to $70 per session. Due to this, the quantity of tutoring sessions consumed falls 700 sessions per month to 600 sessions per month. Showing your work, is this service elastic or inelastic.

.17/.17 = 1

Unit Elastic

500

A product has a cross elasticity of demand of -3.2. What can be said about these products?

What are complements?