Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Econ 102 > Chapter 3-5 exam > Flashcards

Chapter 3-5 exam Flashcards

1
Q

price ceiling set the _____ legal process a seller may charge for a product or service

when p* is ____

consumer is complaining

A

maximum

too high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

a price floor is a _____ price fixed by the government

when p* is too _____

producer is complaining

A

minimum

low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

when demand impact is greater than supply impact

A

an increase in price
decrease in quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

when demand is equal to supply impact

A

an increase in price
unchanged for quantity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

when demand impact is less than supply

A

increase in price
decrease in demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

a products ____ elasticity of demand- the _____ or sensitivity of consumer to the price change

A

price

responsiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

the demand for a product is relatively elastic or ____ - consumers are ___ responsive to price changes

A
  1. elastic
  2. very
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

the demand for a product is relatively inelastic or ____ - consumers _____ respond much to price changes

A
  1. inelastic

2.do not

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

the price-elasticity ______ and formula

A

coefficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

formula %quantity demanded vs % price

A

ie. -2% / 10 = 0.2

-20% / 10 = 2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

more than 1

A

elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

less than 1

A

inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Ed is used to measure the consumers ____ to price change

A

responsiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

due to the property law of demand, Ed will always be a ____ number

A

negative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

equal to one

A

unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Ed= 0

A

perfectly inelastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Ed= infinity

A

perfectly elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

fill in blank: 1.2 demand is relatively elastic it means that a 10% increase will cause the product to fall
my

Solve it!!!!

A

12%

1.2 * 10 = 12

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Midpoint formula

A

(Q2 - Q1)/ (Q2+ Q1)/2)/// (P2-P1)/(P2+P1)/2

ex. (2-3)/(2+3)/2//(5-4)/(5+4)/2 = 1.8 = elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

demand is more price elastic toward the ___ price range than toward the __ price range

A

high

10%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

elasticity vs slope- a straight line of the demand curve, the slope is ____ but the elasticity ____

A
  1. constant
  2. varies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

the total revenue test—

A

(TR= P*Q)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

elastic demand- if demand is elastic a price ____ will increase total revenue

A

decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

inelastic demand- if demand is inelastic a price ___ will increase total revenue

A

increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
unit elasticity- an increase increase or decrease in TR remains unchanged
ie. 10/10 = 1
26
test example: last year they charged $4.00 (p1) and parked 1,000 cars (q1) the. next year they raise it to $5.00(p2) and 850 (q2) solve
1) TR= p1*q1= 4*1,000=4,000 = p2*q2= 5*850=4,250. TR ^ and P^ so it must be true Ed= 850-1000/850+1000/2 /// 5-4/5+4/2= 0.73 inelastic TR ^
27
less substitutes =
less elastic
28
the steeper the graph the more—-
inelastic
29
the flatter the graph the more——-
elastic
30
high price range = lower prices range =
more elastic less elastic
31
the more substibility a consumer has the more ___ they become
elastic
32
more expensive item compared to income
more elastic
33
more luxury goods and time
more elastic
34
necessities
inelastic
35
large crop yield demand = 0.2 to 0.24 the graph is steep == ???
inelastic
36
a products ____ elasticity of suply- the responsiveness or sensitivity of producers to a price change
price
37
the price-elasticity - ____ of supply and formula
coefficient
38
supply only determinate is
time
39
immediate market period
0
40
short run es<1
inelastic
41
the long run Es> 1
more elastic
42
cross price
how sensitive consumer purchases one product to a related product
43
substitute goods, complementary vs independent goods
ie. pepsi = 30/10=3 sprite=5/10=0.5 pepsi is closer the higher the Exy the closer the substitute
44
Exy> 0 —> x and y are ____
substitutes
45
Exy=0—-> x and y are
unrelated
46
Exy < 0 —> x and y are
complements
47
what’s why the elasticity is always measured in terms of
percentages
48
but all else equal, a linear demand schedule becomes more inelastic the more ____ it’s slope
vertical
49
since the demand for natural gas could be usually ____ which would be easy to depict as unusually _____
inelastic vertical
50
by the way eliminate opportunities from market manipulation so in the long run the market can be pretty ____ at giving us what we wants economics works in the ___ run
effective long
51
decrease in price = ___ in quantity
increase
52
increase in price = ___ in quantity
decrease
53
greater than 0 =
substitute
54
less than 0 =
complement
55
= to 0 =
unrelated
56
utility is a ___ - satisfying power; utility is _____
want subjective
57
Total utility- (TU)- the total amount of ___ or pleasure a person derives from consuming some specific quantity of a good or service
utility
58
Marginal utility (MU)- the ___ satisfaction a consumer realizes from an ___ unit of a product
extra additional
59
TU ^ at a ____ rate
deceasing/ ie. diminishing mu
60
when MU= 0, TU is at its ___
maximum
61
how costumers allocate/ spend their money among many goods and services
allocate
62
consumption choice made by typical consumer: ___ behavior ( get the most for their money/ to maximize utility) ____ ( in part preferences are based on the realization of marginal utility by the consumer) ____ constraint (budget limitation at a point in time) —— ( scarcity vs.unlimited wants —-> price tag for every good)
rational preferences budget price
63
utility maximizing rule—
MUa/Pa = MUb/Pb
64
too few =
larger
65
too many =
smaller
66
____ MU/P reduce the budget
higher
67
____ MU/P reaches max
lower
68
utility is ___ to measure
difficult
69
utility-maximizing rule- to maximize satisfaction the consumer should allocate all their money income so that the _____ spent on each product yields the same amount of marginal utility
last dollar
70
that is the consumer will maximize her satisfaction when she allocates her money income so that the _____ spent on product A, the last on product, and so on yield the same amount of _____
last dollar marginal utility
71
from an accounting standpoint, cost refers to direct or out of pocket or ____ costs
explicit
72
accounting profits (lie) = TR- ____ costs
explicit
73
economic costs = explicit costs + ___ costs
implicit
74
if you find that a business owner is making zero economic profit, it doesn’t mean that they earn ____ it means that the revenue are enough to cover all your costs even the value of gneiss owners ____
nothing time

Econ 102 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions