economics\ncoach white\ntest 3: supply & demand\nname \n1. which factor might cause an increase in the…

economics\ncoach white\ntest 3: supply & demand\nname \n1. which factor might cause an increase in the supply of a product?\na a decrease in productivity\nb few sellers in the marketplace\nc the introduction of new technology\nd increase the cost of raw materials\n2. at the market clearing price\na the demand by buyers is rapidly growing\nb the supply by sellers meets the demand from buyers\nc sellers have more goods than buyers demand\nd customers want more goods than the sellers have in stock.\n3. a company increases the price of its clock radios by 10% and the company’s total revenues fall significantly. what term best describes the demand for its product? (ssemi3c)\na elastic\nb inelastic\nc unit elastic\nd total receipts test\n4. gas consumption remains steady as prices soar\nthis headline suggests that:\na demand for gas is elastic\nb demand for gas is inelastic\nc supply for gas is elastic\nd. supply for gas is inelastic\n5. which of the following might cause an increase in supply? (ssemi3a)\na increase in the cost of inputs/resources\nb decrease of productivity\nc introduction of new technology\nd fewer sellers in the marketplace\n6. what factor causes a change in quantity supplied (move along the curve)? (ssemi3a)\na change in cost of inputs.\nb change in price.\nc change in consumer taste\nd change in consumer income.\n7. what is the satisfaction a consumer enjoys by purchasing 1 more unit of a product called?\na marginal utility\nb personal satisfaction\nc trade - offs\nd cause and effect.\n8. if an increase in the price of coffee causes a decrease in the demand for creamer then how are the products related? (ssemi3a)\na substitutes\nb compliments\nc unrelated/independent\nd demand elastic\n9. a price located below market equilibrium will always create what two things?\na shortage and price floor.\nb surplus and price floor.\nc shortage and price ceiling\nd surplus and price ceiling\n10. what is it called when the government sets the price of a product above the equilibrium price? (ssemi3b)\na equilibrium price\nb marginal price\nc price floor\nd price ceiling

economics\ncoach white\ntest 3: supply & demand\nname \n1. which factor might cause an increase in the supply of a product?\na a decrease in productivity\nb few sellers in the marketplace\nc the introduction of new technology\nd increase the cost of raw materials\n2. at the market clearing price\na the demand by buyers is rapidly growing\nb the supply by sellers meets the demand from buyers\nc sellers have more goods than buyers demand\nd customers want more goods than the sellers have in stock.\n3. a company increases the price of its clock radios by 10% and the company’s total revenues fall significantly. what term best describes the demand for its product? (ssemi3c)\na elastic\nb inelastic\nc unit elastic\nd total receipts test\n4. gas consumption remains steady as prices soar\nthis headline suggests that:\na demand for gas is elastic\nb demand for gas is inelastic\nc supply for gas is elastic\nd. supply for gas is inelastic\n5. which of the following might cause an increase in supply? (ssemi3a)\na increase in the cost of inputs/resources\nb decrease of productivity\nc introduction of new technology\nd fewer sellers in the marketplace\n6. what factor causes a change in quantity supplied (move along the curve)? (ssemi3a)\na change in cost of inputs.\nb change in price.\nc change in consumer taste\nd change in consumer income.\n7. what is the satisfaction a consumer enjoys by purchasing 1 more unit of a product called?\na marginal utility\nb personal satisfaction\nc trade - offs\nd cause and effect.\n8. if an increase in the price of coffee causes a decrease in the demand for creamer then how are the products related? (ssemi3a)\na substitutes\nb compliments\nc unrelated/independent\nd demand elastic\n9. a price located below market equilibrium will always create what two things?\na shortage and price floor.\nb surplus and price floor.\nc shortage and price ceiling\nd surplus and price ceiling\n10. what is it called when the government sets the price of a product above the equilibrium price? (ssemi3b)\na equilibrium price\nb marginal price\nc price floor\nd price ceiling

Answer

Brief Explanations:

  1. New technology can increase production efficiency and thus increase supply.
  2. Market - clearing price is where supply equals demand.
  3. When a price increase leads to a significant revenue fall, demand is elastic as quantity demanded drops a lot.
  4. Steady gas consumption despite price increase indicates inelastic demand.
  5. New technology helps increase supply.
  6. A change in price causes a movement along the supply - curve (change in quantity supplied).
  7. Marginal utility is the satisfaction from consuming one more unit.
  8. Coffee and creamer are complements as an increase in coffee price decreases creamer demand.
  9. A price below equilibrium creates a shortage and a price ceiling is a maximum price set below equilibrium.
  10. A price set above equilibrium by the government is a price floor.

Answer:

  1. C. the introduction of new technology
  2. B. the supply by sellers meets the demand from buyers
  3. A. Elastic
  4. B. Demand for gas is inelastic
  5. C. Introduction of new technology
  6. B. Change in price.
  7. A. Marginal utility
  8. B. Complements
  9. C. Shortage and Price Ceiling
  10. C. Price floor