Title: This is JEOPARDY
1This is JEOPARDY
- Supply and Demand
- Mr. Booth/Alex Trebek
2Categories
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Def. of Demand
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Def. of Supply
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Elastic or Inelastic
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What If?
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Random
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Review Questions
3Final Jeopardy
4QD would decrease from 10 to 5.
- You have 50 and want to buy some CDs. If
prices of CDs rose from 5 each to 10, how
would your quantity demanded of CDs change?
5Benefit or satisfaction gained from using a good
or service
What is Utility?
6You buy more if the price is lower and buy less
if the price is higher
What is the Income Effect?
7When you react to a change in price and buy a
similar product Ex. Going to a movie instead of
renting a DVD from Blockbuster
What are Substitutions or the Substitution Effect?
8Demand for these goods fall as income rises.
Example Discounted clothing
What are Inferior Goods?
9When the use of a product increases the use of
another product. Example Cereal and Milk
What are Complements?
10The change in total product by adding more workers
What is Marginal Product?
11Costs that depend on the level of output.
Example Wages for workers
What are Variable Costs?
12Tax on items the government is interested in
discouraging. Ex Tax on Cigarettes
What are Excise Taxes?
13This controls businesses behavior. Ex.
Government _____the prescription drug industry so
people dont die from a dangerous drug
What is Regulation?
14Example Cost that a business must pay
regardless of output. Example A business
paying its lease or even utilities.
What are Fixed Costs?
15A good with a lot of substitutes.
What is Elastic?
16Dont Choke!
Daily Double
17A luxury item like a Ferrari
What is Elastic?
18Insulin
What is Inelastic?
19Sweet rims for an Escalade
What is Elastic?
20Ice Cream
What is Elastic (many substitutes if prices goes
up)?
21A software company invest in a set of fast, new
computers that allow employees to test their new
programs easily and quickly. What factor is this
and how will it affect supply?
Want is Technology/Increase/Shift Right?
22A farmer is deciding how much tobacco and how
much corn to grow on the farm. Congress recently
cut the subsidies that it pays farmers to raise
tobacco. What factor is this and how will it
affect supply of both crops?
A. Government Action/tobacco will decrease in
supply and supply of corn will increase and move
to the right.
23Situation Substitutes. The price goes up for a
movie. What happens to the demand of renting a
DVD (Substitute). It goes _____
What is Up ?
24A tool-making company hires several workers who
got degrees from a technical school, where they
learned manufacturing techniques. Which factor
is this and how will it affect supply?
A. What is productivity/ Supply will increase and
shift the curve to the right?
25Dont Choke!
Daily Double
26You own a company that makes wire. The price of
copper has recently gone up. What characteristic
is it and what happens to supply?
A. Characteristic is input costs and supply will
decrease and go to the left.
27Money made from producting an additional unit of
output.
What is Marginal Revenue?
28This law states that the marginal benefit of
using each additional unit of a product during a
given period will decline
What the Law of Diminishing Marginal Utility?
29Goods that consumers demand more of when their
incomes rise
What are Normal Goods?
30When a worker focuses on a particular aspect of
production
What is Specialization?
31A government payment that partially covers the
cost of an economic activity. Example
Government made payments to double the supply of
ethanol (gasoline substitute)
What is a Subsidy?
32A. Supply is above the equilibrium price
SurplusSupply is below the equilibrium price
Shortage
How are surplus and shortage related to
equilibrium price?
33Inelastic
When consumers have few choices, will the demand
be elastic or inelastic?
34A. They will buy the substitute because its
cheaper.
If the price of a substitute drops, will they buy
the substitute or the original good?
35A. An increase in demand for coffee
An increase in demand for one complement will
have what effect on the other complementary good?
Example An increase in demand for sugar will
have what effect on coffee?
36Does supply have an inverse or direct
relationship?
A. A direct relationship. If demand goes up,
supply goes up because producers think they can
make more money with more product sold.