Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Name 3 of the six factors that cause the demand curve to increase (shift to the right). Give an example of each.

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. If a product goes on sale and more people buy it, is it a “change in demand” or “change in quantity demanded”? Does the curve shift?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Define each word: – Diminishing: – Marginal: – Utility: – Diminishing Marginal Utility

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Name 3 of the six factors that cause the supply curve to increase (shift right). Give an example of each.

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. What are the three questions you ask to determine elasticity of Demand?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Huge storms damage Florida crops. Product: Oranges. Which curve shifts which way? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Is a price ceiling above or below equilibrium? Does it create a shortage or surplus? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. When demand increases, does equilibrium price go up or down? What about equilibrium quantity?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Name a product with inelastic supply. Why is supply inelastic? Name a product with elastic supply. Why is supply inelastic?

: ANSWER : Diminishing: Gets smaller over time Marginal: Each extra Utility: Usefulness Diminishing Marginal Utility: “The usefulness of each extra unit is smaller than the previous.”

: ANSWER : It is a “Change in quantity demand” (movement along the curve) because quantity demanded is changing in response to a change in price (a sale is a drop in price)

: ANSWER : Substitutes price rise Complement price drop Consumer income rises # of Consumers goes up Consumer Tastes go up Expect to need the product

: ANSWER : Supply decreases (shifts left) because cost of inputs goes up.

: ANSWER : 1.Are substitutes available? 2.Can the purchase be delayed? 3.Is the purchase a large portion of income?

: ANSWER : Cost of inputs drops Taxes decrease or subsidies increase Government regulations decrease # of producers increase Technology improves (increases) Productivity increases

: ANSWER : Inelastic supply should be a product that is complex to make and uses different land, labor, and capital that might be hard to get quickly. Elastic supply should be a product that is simple to make.

: ANSWER : Price goes up Quantity goes up

: ANSWER : Price ceiling is below the equilibrium. This would create a shortage because quantity demanded would be higher than quantity supplied at the set price.

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Explain how the principle of Diminishing Marginal Utility leads to a demand curve that slants down to the right (aka: has a negative slope).

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Government gives subsidy to shrimp farmers. Product: Shrimp. Which curve shifts which way? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Price of Adidas sneakers goes up. Product: Nike sneakers. Which curve shifts which way? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Government taxes gasoline Product: Gasoline. Which curve shifts which way? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Label each event according to the factor that causes demand to shift.. Product: Chips Events: Price of salsa Price of pretzels People go on diets

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. If a product becomes popular (demand increases), more people want to buy it, would it cause a “change in supply” or “change in quantity supplied”?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Identify whether the supply of these products is elastic or inelastic… Bread Gasoline T-shirts

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Label each event according to the factor that causes demand to shift.. Product: Airplanes Events: Safety regulations Workers strike Price of steel drops

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Identify whether the demand for these products is elastic or inelastic… Salt Food (in general) DVDs

: ANSWER : Demand for Nike would increase (shift to the right). The factor is “price of substitutes”

: ANSWER : Supply for shrimp would increase (shift to the right). The Factor is “subsidies”

: ANSWER : Because each additional unit will give less satisfaction, people are willing to pay less for more units, so the demand curve goes down as the quantity increases.

: ANSWER : This results in a “change in quantity supplied” because a shift in demand causes movement along the supply curve to the new equilibrium.

: ANSWER : Price of salsa = Price of Complements Price of pretzels = Price of Substitutes People go on diets = Tastes & Preferences

: ANSWER : Supply decreases (shifts left) Factor: Taxes

: ANSWER : Salt = Inelastic Food (in general) = Inelastic DVDs = Elastic

: ANSWER : Safety regulations = Regulations Workers strike = Cost of inputs or Productivity Price of steel drops = Cost of inputs

: ANSWER : Bread = Elastic Gasoline = Inelastic (short-term) T-shirts = Elastic

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Population of old people increases each year. Product: Wheelchairs. Which curve shifts which way? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. When supply increases, does equilibrium price go up or down? What about quantity?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Is a price floor above or below equilibrium? Does it create a shortage or surplus? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Packers win the Super Bowl. Product: Packers Jerseys. Which curve shifts which way? Why?

Quiz Quiz Trade! DIRECTIONS: Read the following question to your partner. Check their answer (on the back) If they get it wrong, you must explain why their response is incorrect. : QUESTION. Event: Government requires cars to be fuel-efficient Product: Cars. Which curve shifts which way? Why?

: ANSWER : When supply increases, equilibrium price goes down and equilibrium quantity goes up.

: ANSWER : Price Floor is above equilibrium. It creates a surplus as more are willing to supply than demand at the high price.

: ANSWER : Demand increases (shifts right) Factor: Number of Consumers

: ANSWER : Supply decreases (shifts left) Factor: Government Regulations

: ANSWER : Demand increase (shifts right) Factor: Consumer Tastes