Show:
Demand
Supply
To Shift or Not to Shift
Costs and Prices
Government Intervention
100

What type of relationship does price and quantity demanded have?

What is an inverse relationship.

100
What is the law of supply
What is when price goes up, supply goes up or when price goes down supply goes down.
100

Type of factors that will shift the demand or supply curve

What are non-price factors

100

The two types of costs are _________. Give 1 example of each.

What is variable (e.g. raw materials) and fixed costs (e.g. rent).

100
At a given price, a surplus occurs when
What is the quantity supplied is greater than the quantity demanded.
200

According to the law of demand, a decrease in the price of a gallon of gas would cause

What is increase the quantity demanded for gas

200

What happens when quantity supplied is less than quantity demanded? Show using a graph.

What is a shortage.

200
What will happen to the supply of belts if the price of leather increases? Please draw your answer.
What is the supply curve will shift to the left.
200
In economics, the cost of producing one more unit is called
What is marginal cost
200
The maximum legal price that can be charged for a product is a
What is price ceiling
300

2 factors that determine whether or not you have a demand

What is you both want and can afford to buy the good or service

300

Which of the following will NOT cause a supply curve to shift?

a. a change in consumer taste

b. a change in technology

c. a change in the number of sellers

d. a change in the price of resources.

What is a. a change in consumer taste

300

Tennis rackets are on sale. How will this affect the demand curve? Please draw your answer

What is the curve will not shift. Only the price will change therefore increasing quantity demanded

300

Total Revenues - Total costs are equal to

What is profit

300
Price floors tend to result in
What is surpluses
400
A decrease in demand causes ________ in equilibrium price and a _______ in equilibrium quantity.
What is decrease and decrease
400

How do taxes on producers affect supply?

What is taxes increase production costs, therefore supply decreases.

400

What happens to the price of margarine if the price of butter falls? What happens to equilibrium price and equilibrium quantity? Draw a graph and label everything.

What is the demand curve shifts to the left, EQ decreases, EP decreases

400

At what point would a supplier decide not to hire an additional worker?

What is when marginal revenue = marginal cost.

400

A price floor may be set by the government to help: 

a. the consumer 

b. the supplier 

c. government 

d. foreign nations

What is b. the supplier

500

What’s the difference between a change in demand and a change in quantity demanded?

What is change in demand = entire curve shifts; change in quantity demanded = movement along the curve.

500

Graph a leftward shift in supply and describe one reason for this shift.

What is a decrease in the number of sellers, a natural disaster or an increase in price of a related good.
500

What effect does an economic downturn, which lowers incomes affecting consumer purchases of high-end consumer goods on demand or supply? Show it on a graph.

What is demand curve shifts to the left.

500

How would the equilibrium price compare between perfect competition and monopolies?

What is monopolies would sell at a higher price because they are price makers.

500

If the government gives a subsidy to farmers, what happens to the supply of corn?

What is supply increases because lower production costs = more supply.