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Module Quiz -- Supply and Demand To complete the quiz, click on the radio button of your choice for each of the questions.
When you are finished, hit the "Check Answers" button at the bottom of the page. Your answers will be graded and you will be given the percentage of correct answers as well as a list of right and wrong answers. Answers to these quiz questions are also available. The Supply Curve is upward-sloping because: As the price increases, so do costs.
As the price increases, consumers demand less. As the price increases, suppliers can earn higher levels of profit or justify higher marginal costs to produce more.
Demand for Michael Jordan's talents is very high since he can generate so much revenue for a firm. Consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials. All of the Above When college students leave town for the summer, the demand for meals at the local restaurants declines.
This results in a decrease in equilibrium price and an increase in quantity. None of the Above All the following shift the demand curve for automobiles to the right except: None of the Above If the cost of computer components falls, then the demand curve for computers shifts to the right.
The demand curve shifts left. The demand curve shifts right. The supply curve shifts left. The supply curve shifts right.
We move along the supply curve. If a sin tax is placed on sales of alcohol, the demand curve shifts to the left.
When a price ceiling is imposed above the equilibrium price, a shortage results. If the demand curve shifts to the right, then we move up and to the right along our supply curve. True False If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right.Demand, Supply, Market Equilibrium and Elasticity A.
Elasticity of demand is shown when the demands for a service or goods vary according to the price. Cross-price elasticity is shown by a change in the demand for an item relative . Supply and Demand principles are behind what drives price movements in any market, but it seems that not many traders are really paying too much attention.
In the supply and demand model, the equilibrium price and quantity in a market is located at the intersection of the market supply and market demand curves. Note that the equilibrium price is generally referred to as P* and the market quantity is generally referred to as Q*.
The interaction between consumers and producers in a competitive market determines demand and supply equilibrium, price and quantity. Market forces tend to drop the price if quantity supplied exceeds quantity demanded and prices rise if quantity demanded exceeds quantity supplied.
This movement continues until there are no more changes, . Since decreases in demand and supply, considered separately, each cause equilibrium quantity to fall, the impact of both decreasing simultaneously means that a new equilibrium quantity of coffee must be less than the old equilibrium quantity.
The supply-and-demand model is a partial equilibrium model of economic equilibrium, where the clearance on the market of some specific goods is obtained independently from prices and quantities in other markets.