Microeconomics Unit Test|25
Questions and Answers
_____ is the type of competition that occurs in a competitive market without
identical producers. - -monopoly
-Which helps enable an oligopoly to form within a market? - -Firms
cooperate to reduce competition.
-A supply schedule shows how prices affect the - -quantity of a good
supplied by a producer.
-The law of supply states that as the price of a good rises, the quantity
supplied of that good - -increases
-On this graph, the bottom horizontal line represents - -an effective price
ceiling set below equilibrium.
-When a company produces goods for sale, those goods must be - -created
in ways that meet consumer demand.
-The graph shows a demand curve.
What changes does the graph show? - -a increase in demand and a
decrease in price
-In the market, actions known as incentives affect - -consumers or
producers.
-Supply and demand coordinate to determine prices by working - -together
-Sample scenario: Scientists have created a new grass seed that stops grass
growth at a specific length, eliminating the need to mow the lawn. The price
of this seed is high, but many consumers still want to use it. As a result,
several different producers supply a large amount of this seed to consumers.
In order to attract consumers to their product, some producers lower their
prices and supply fewer bags of seeds.
What is the best description of the grass seed that is described in this
scenario? - -a good with an elastic supply
-What happens when the quantity of goods is higher than demand? - -
excess supply
Questions and Answers
_____ is the type of competition that occurs in a competitive market without
identical producers. - -monopoly
-Which helps enable an oligopoly to form within a market? - -Firms
cooperate to reduce competition.
-A supply schedule shows how prices affect the - -quantity of a good
supplied by a producer.
-The law of supply states that as the price of a good rises, the quantity
supplied of that good - -increases
-On this graph, the bottom horizontal line represents - -an effective price
ceiling set below equilibrium.
-When a company produces goods for sale, those goods must be - -created
in ways that meet consumer demand.
-The graph shows a demand curve.
What changes does the graph show? - -a increase in demand and a
decrease in price
-In the market, actions known as incentives affect - -consumers or
producers.
-Supply and demand coordinate to determine prices by working - -together
-Sample scenario: Scientists have created a new grass seed that stops grass
growth at a specific length, eliminating the need to mow the lawn. The price
of this seed is high, but many consumers still want to use it. As a result,
several different producers supply a large amount of this seed to consumers.
In order to attract consumers to their product, some producers lower their
prices and supply fewer bags of seeds.
What is the best description of the grass seed that is described in this
scenario? - -a good with an elastic supply
-What happens when the quantity of goods is higher than demand? - -
excess supply
