Review for CAUNIT 4 Supply & Demand / Markets

Money & Banking Unit

list all answers that apply

3. On a supply and demand graph, supply will decrease and shift to the left when which of the following happens?

A There are more government regulations in place.

B The total costs of inputs decreases.

C Competition increases.D Production taxes rise over a

short period of time. E The producer expects the cost

of materials to be reduced in the month ahead

4. On a supply and demand graph, supply will increase and shift to the right when which of the following happens?

A There are more government regulations in place.

B The total costs of inputs decreases.

C Competition decreases.D Production subsidies rise over

a short period of time. E There is improvement in

technology

REVIEW for Unit 4 TEST• On a supply and demand graph,

supply will increase and shift to the right when which of the following happens?

A. There are more government regulations in place

B. The total costs of inputs decreases.

C. Competition increases. (Number of suppliers increases)

D. Production taxes rise over a short period of time

E. New technology is developed

More than 1 answer!!

• Few sellers• Many barriers to market

entry • Little product

differentiation• Concern with Price

fixing WHAT DOES THIS DESCRIBE?

REVIEW for Unit 4 TEST• On a supply and demand graph,

supply will increase and shift to the right when which of the following happens?

A. There are more government regulations in place

B. The total costs of inputs decreases.

C. Competition increases. (Number of suppliers increases)

D. Production taxes rise over a short period of time

E. New technology is developed

• Few sellers• Many barriers to market

entry • Little product

differentiation• Concern with Price

fixing WHAT DOES THIS DESCRIBE? Oligopoly

• In a supply and demand graph what happens if the cost of parts for cell phones decreases? Hint: Is is supply or demand? Does it increase or decrease? Which way does the graph move?

• For most products and services, increased price results in

Demand for fewer or more products?Supply for fewer or more products?Substitutes? Compliments?

• Jessica has been wearing a popular style sneaker for several years; and she loves them. Recently, because the price increased by $30, she has not been able to afford them on her meager salary. Many of her friends are in the same position. How will the price affect the quantity demanded and supplied?

• Advertising, fashion trends, and new product introductions serve to

• In a supply and demand graph what happens if the cost of parts for cell phones decreases? Hint: Is is supply or demand? Does it increase or decrease? Which way does the graph move?

• For most products and services, increased price results in

Demand for fewer or more products?Supply for fewer or more products?More Substitutes Less Compliments

• Jessica has been wearing a popular style sneaker for several years; and she loves them. Recently, because the price increased by $30, she has not been able to afford them on her meager salary. Many of her friends are in the same position. How will the price affect the quantity demanded LESS and supplied MORE?

• Advertising, fashion trends, and new product introductions serve to change CONSUMER TASTE and move the demand curve

• In a market economy, a high price is a signal for

Producers to supply ____Consumers to buy____

In a supply and demand graph what happens if the cost of parts for products decreases?

Large number of sellersLittle control over pricesSome product differencesEasy to enter marketWhat type market structure does this describe?

Which has only 1 seller?

• In a market economy, a high price is a signal for

Producers to supply moreConsumers to buy less

In a supply and demand graph what happens if the cost of parts for products decreases? Supply graft shifts to the RIGHT

Large number of sellersLittle control over pricesSome product differencesEasy to enter marketWhat type market structure does this describe? MONOPOLISTIC COMPETITION

Which has only 1 seller?MONOPOLY