Microeconomics Review

Front

A market structure in which only one producer supplies a good that is in demand, thereby permitting them to set the price by how much they supply, is called

Back

monopoly.

Front

A breakthrough in nanotechnology allows silicon chips for computers to be produced much more quickly and cheaply. If demand for computers remains unchanged, what will be the effect upon market price and supply?

Back

The supply will rise while the price falls.

Front

The price at which total supply equals total demand is known as

Back

the equilibrium price.

Front

An industry that is dominated by a few large firms is

Back

oligopolistic

Front

Even though Bonnie can buy her favorite apple pie at the grocery store for a third of the price, she insists at buying it at a country store. She insists the pies are better and willingly pays the extra money. Thus, the country store sells apple pies for more than the average price. This is largely due to?

Back

economic impact of consumer taste

Front

In this supply & demand schedule, what would happen if the price of the socks was set at $2.50 a pair?

Back

a shortage.

Front

What would happen if producers raised the price to $3.50 a pair?

Back

a surplus.

Front

In a perfect market economy, for what price will the socks be sold?

Back

$3.00

Front

This graph indicates an increase in __________.

Back

Supply

Front

Equilibrium is the point where supply meets _________.

Back

Demand