ABM 301 Quiz 1

Question 1

effect of the change in price to the quantity of demand

Answer 1

price elasticity

Question 2

influence to changes in price

Answer 2

inflation

Question 3

price elasticity is greater than 1

Answer 3

elastic

Question 4

price elasticity is less than 1

Answer 4

inelastic

Question 5

price elasticity is equal to 1

Answer 5

unitary

Question 6

measures the responsiveness in the quantity demanded of one good when the price for another changes

Answer 6

cross elasticity of demand

Question 7

changes in income, substitute goods, taste, preferences

Answer 7

demand shifters

Question 8

prices of income on production, advances in technology, subsidies and taxes of other goods, price expectation of seller

Answer 8

supply shifters

Question 9

POV of sellers collecting goods

Answer 9

hoarding

Question 10

POV of buyers collecting goods

Answer 10

panic buying

Question 11

cross elasticity greater than 0

Answer 11

substitute product

Question 12

cross elasticity less than 0

Answer 12

complimentary product

Question 13

the best price and quantity in the market where both the buyers and the sellers are happy

Answer 13

market equillibrium

Question 14

father of… said that there are unforseen forces in the free market economy

Answer 14

Adam Smith

Question 15

prices where demand and supply are out of balance

Answer 15

disequillibrium

Question 16

max price to allow consumers to buy necessary goods which they cannot afford at equilibrium price

Answer 16

price ceiling

Question 17

min price fixed above the ___is legal, to provide profit for the suppliers

Answer 17

price flooring

Question 18

quantity demanded formula

Answer 18

2000 - 2p

Question 19

quantity supplied formula

Answer 19

2000 + 4p = 2QS

Question 20

price elasticity formula

Answer 20

u alr know

Question 21

cross elasticity formula

Answer 21

u alr know

Question 22

market equilibrium

Answer 22

QD = QS