Supply and Demand Test

Question 1

define supply

Answer 1

the willingness and ability of producers to offer goods and services

Question 2

define demand

Answer 2

the willingnes to buy a good or service and the ability to pay for it

Question 3

define total revenue

Answer 3

a company’s income from selling its products

Question 4

define demand curve

Answer 4

graph that displays data from demand schedule; demand-down

Question 5

define supply curve

Answer 5

graph the displays data from supply schedule; supply-sky-up

Question 6

define demand schedule

Answer 6

list of how much of an item an individual is willing to purchase at every price

Question 7

define supply schedule

Answer 7

list of how much of a good or service a producer is willing to offer at each price

Question 8

define law of supply

Answer 8

1. Price decrease, supply decreases

2. Price increases, supply increases

Question 9

define law of demand

Answer 9

1. Price decreases, demand increases

2. Price increases, demand decrease

Question 10

define Price Floor

Answer 10

legal minimum price for a good or service ex: minimum wage

Question 11

define Price Ceiling

Answer 11

legal maximum price for a good or service ex:gas prices every day

Question 12

define substitutes

Answer 12

products used in place of other products to satisfy needs or wants ex:Nutella instead of PB

Question 13

define Complements

Answer 13

products used together ex: PB and Jelly

Question 14

define Marginal cost

Answer 14

extra cost of producing 1 more unit

Question 15

define marginal product

Answer 15

change in total output brought about by adding one more worker

Question 16

define fixed costs

Answer 16

costs that the owner occurs no matter how much they produce

Question 17

define variable costs

Answer 17

costs dependent upon the level of production output

Question 18

define total profit

Answer 18

idk

Question 19

define regulation

Answer 19

a government factor that affects supply

Question 20

define surplus

Answer 20

results when the quantity supplied is greater than the quantity demanded

Question 21

define shortage

Answer 21

results when the quantity supplied is less than the quantity demanded

Question 22

define Equilibrium price

Answer 22

price at which the individual quantity demanded and individual quantity supplied are equal

Question 23

How is total revenue calculated?

Answer 23

all sales or money coming into the business

Question 24

what factors affect demand?

Answer 24

willingness to pay, ability to pay, market size, consumer taste, consumer expectations, substitutes and complemts

Question 25

what factors affect supply?

Answer 25

input costs, labor productivity, technology, govt action, number of producers

Question 26

How do business owners decide on the right number of workers?

Answer 26

idk

Question 27

How does a business owner calculate total profit?

Answer 27

total sales or revenues minus total costs

Question 28

What motivates producers to increase supply?

Answer 28

price always motivates producers and consumers in a market economy

Question 29

What do lower prices encourage?

Answer 29

consumers to buy goods and services

Question 30

What does a surplus indicate?

Answer 30

prices are too high

Question 31

What does a shortage indicate?

Answer 31

price is too low

Question 32

When customers demand more goods and services at every price, what will happen to the equilibrium?

Answer 32

it will shift