What are the two things that consumers need when demanding a good or service?
Willingness and Ability
100
What is supply?
Amount of goods and services that sellers are willing and able to sell in the marketplace at various prices.
100
What will happen to the supply and/or demand of iPods if they go on sale next month? Which determinant did you use?
The demand of iPods will decrease (Demand Determinant: Consumers price expectation)
100
What is elasticity?
Measure of responsiveness
100
Where is the equilibrium point?
Intersection of supply and demand curves
200
What is the Law of Demand?
As price increases, quantity demanded decreases and vice versa
200
What is the law of Supply?
As price increases, the quantity supplied increases and vice versa.
200
What will happen to the supply and/or demand of coffee if the cost of coffee beans increases?
The supply of coffee will decrease (Supply Determinant: Cost of resources)
200
What are the three types of elasticity?
Elastic, Inelastic, Unit elastic
200
Demand increases. What happens to the equilibrium price and quantity?
Equilibrium price and quantity both increase.
300
What happens to the demand curve when a change in price occurs?
Quantity demanded changes or a movement along the curve
300
Why does a supply curve slope upward?
Prices and quantity supplied are positively related. As one increases, so does the other one.
300
What will happen to the demand of Nike shoes if it is the shoe used by many famous athletes?
Demand will increase (Demand Determinant: Change in taste/preference)
300
What type of demand elasticity does this scenario exemplify: Gas is $3 per gallon and you buy 12 gallons. Gas goes up to $4 and you still buy 12 gallons.
Inelastic. Price increases, Total Expenditure increases
300
The price of donuts falls below equilibrium? What do we call this?
A shortage
400
What is the difference between demand and quantity demanded?
Demand shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices. Quantity demanded refers to how many units will be demanded at a particular price.
400
What are the determinants of supply?
The cost of resources, Technology, Producers price expectations, the number of sellers in the market, supply shock (Natural Disaster and Human Error)
400
What will happen to the supply and/or demand of pop in Rio de Janeiro during the 2016 Olympics?
Demand will increase (Demand Determinant: Change in population size)
400
Do urgent medical services have elastic or inelastic demand?
Inelastic. We need them right away and don't have any substitutes.
400
Demand increases and Supply decreases. What happens to the equilibrium price and quantity?
Equilibrium price increases and equilibrium quantity stays about the same
500
What would happen to the demand of Arizona Iced Tea if the price doubled from $1 to $2?
The quantity demanded would decrease but the demand curve remains the same
500
What causes a change in quantity supplied?
A change in price
500
What will happen to the supply and/or demand of Xbox Ones if Microsoft gives their employees a raise?
Demand will increase and Supply will decrease (Demand determinant: Change in income, Supply determinant: Cost of resources)
500
Does the following scenario have elastic or inelastic supply: Bob made 4 steaks at $6 each. The price rose to $12 and Bob made 16 steaks.
Elastic. Price is doubled and quantity supplied is quadrupled with a much larger proportional change.
500
What is a surplus? Where is it in relationship to equilibrium?
A surplus is when we have more products than what is needed. A surplus can be found at any price point above equilibrium.