Table of Contents
Which factors must a producer consider when deciding what a good to supply?
the appeal of the good to family members the elasticity of a good being supplied competition within the market the ability to produce the good efficiently the ability to produce a good of low quality.
Which best explains why the law of supply operates the way it does in a free enterprise?
Which best explains why the law of supply operates the way it does in a free enterprise economy? Companies want to be as profitable as possible.
Which best describes what happens to amount of a good or service that is supplied to consumers?
Which best describes what happens to the amount of a good or service that is supplied to consumers? The amount of a good or service can change.
Which best describes the role of the availability of resources plays when a company is considering whether to produce a certain good?
Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good? Resources can always be obtained no matter what the cost. If a resource is difficult to obtain production costs will be high.
Which calculation helps determine which producer has the absolute advantage?
Which calculation helps determine which producer has the absolute advantage? Amount produced minus resources used.
How many goods must be supplied to achieve equilibrium?
It might be said that 15 goods are supplied. It could be added that equilibrium is defined when demand and supply meet and it also might include a supply curve. However if the supply is high and the demand is low the price should decrease in order to get equilibrium.
Which statement best explains the law of supply quizlet?
Which statement best explains the law of supply? The quantity supplied by producers increases as prices rise and decreases as prices fall.
How does the law of supply say the factory will respond to the increase in the price of blue widget?
The law of supply says that the factory will respond by producing more blue widgets. Under the current model input costs aside the factory stands to make $100 dollars a day if both blue and green widgets are priced at $5 a widget.
Which best explains how the law of demand affects consumers?
Which best explains how the law of demand affects consumers? It helps consumers tell producers when prices are too high.
What happens when the price of a good increases the quantity of goods that are produced increases?
What happens when the price of a good increases?
An increase in the price of a good will increase demand for its substitute while a decrease in the price of a good will decrease demand for its substitute. … An increase in the price of a good will decrease demand for its complement while a decrease in the price of a good will increase demand for its complement.
What factor most influences changes in consumer demand?
A factor that most influences changes in customer demand is price. Price is an important factor that determine the demand of a goods and services. If the price is too high the demand will be low. If the price is low the demand will be high.
What usually happens to the demand for a good or service when the price increases?
As we can see on the demand graph there is an inverse relationship between price and quantity demanded. Economists call this the Law of Demand. If the price goes up the quantity demanded goes down (but demand itself stays the same). If the price decreases quantity demanded increases.
Which most likely accounts for the changes shown on the demand curve?
Which most likely accounts for the changes shown on the demand curve? More Consumers want a Product .
What will most likely result from this price control quizlet?
What will most likely result from this price control? The quantity demanded for bread will decrease and the quantity supplied will increase.
When a producer has an absolute advantage at producing a good it means the producer?
When a producer has an absolute advantage at producing a good it means the producer: can produce more of that good than others with the same amount of resources. Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.
What determines absolute advantage?
Which calculation helps determine which producer has the absolute advantage amount produced minus resources used resources used divided by amount produced?
Absolute advantage is how a producer can produce efficiently compared to another producing more output with the same resources. When the total output is dived by the total resources used gives the absolute advantage or the productivity. The more productivity the more the absolute advantage the producer has.
What happens when the quantity of a good supplied?
If the quantity supplied is greater than the quantity demanded what must happen to the price in order to reach equilibrium? The price of the product will increase to meet equilibrium. The price of the product will decrease to meet equilibrium.
What factor most directly affects the demand for automobiles?
The factor that most directly affects the demand for automobiles is the individual tastes and preferences of buyers.
Which occurs during market equilibrium check?
During market equilibrium Supply and demand meet at a specific price. At market equilibrium the supply and demand curves intersect to identify a point where the quantity demanded is equal to the quantity supplied. The price at this point is the equilibrium price and the quantity obtained is the equilibrium quantity.
Which best explains the law of supply?
Definition: Law of supply states that other factors remaining constant price and quantity supplied of a good are directly related to each other. In other words when the price paid by buyers for a good rises then suppliers increase the supply of that good in the market.
Which of the following best describes the law of supply?
Which of the following best describes the law of supply? As price increases quantity supplied increases.
What does the law of supply suggest?
The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Supply in a market can be depicted as an upward sloping supply curve that shows how the quantity supplied will respond to various prices over a period of time.
What is the best measurement to use to determine who might have the absolute advantage?
Which is the best measurement to use to determine who might have the absolute advantage? when one producer is able to produce a competitive product using fewer resources or the same resources in less time. Looking at a graph- who produces the most for the most money- who is going to make the most profit overall.
Which needs to happen in order to stop disequilibrium from occurring?
Which needs to happen in order to stop disequilibrium from occurring? The price of the product must go down.
What is a measure of behaviors by producers and consumers in response to changes in price?
Elasticity is the measure of behaviours by producers and consumers in response to changes in price. It is the conic term which measures how the supply and demand is affected and changed because of an increase or decrease in price.
How do supply and demand work together to influence the price of a product?
Supply and demand is an economic model of price determination in a market. … If demand increases and supply remains unchanged then it leads to higher equilibrium price and higher quantity. If demand decreases and supply remains unchanged then it leads to lower equilibrium price and lower quantity.
Which development would most likely cause the demand for a product to increase?
Which development would most likely cause the demand for a product to increase? The number of consumers in a market increases.
Which events could cause the change in supply?
Factors that can shift the supply curve for goods and services causing a different quantity to be supplied at any given price include input prices natural conditions changes in technology and government taxes regulations or subsidies.
For whom is the good a normal good?
A normal good is a good that experiences an increase in its demand due to a rise in consumers’ income. Normal goods has a positive correlation between income and demand.
What determines the quantity of a good that sellers supply?
The optimal quantity supplied is the amount that completely satisfies current demand at prevailing prices. To determine this quantity known supply and demand curves are plotted on the same graph. On the supply and demand graphs quantity is in on the x-axis and demand on the y-axis.
When the price of a good service or resource increases?
The law of demand states that: As the price of a good service or resource rises the quantity demanded will fall all else held constant.
Why does supply increase when price increases?
So when the price is high all the lowest-cost production happens as before. AND lots of the higher-cost production happens too. So the quantity supplied increases.
Perfect Competition Short Run (1 of 2)- Old Version
Chapter 26. Exercises 6-9.
Chapter 7 Exercise 6-10. Consumers producers and the efficiency of Markets. Gregory Mankiw
