Micro Economics, Demand & Supply, Elasticity


#1. If the price of a good increases, what happens to the quantity demanded according to the law of demand?

#2. If the percentage change in quantity supplied is less than the percentage change in price, the supply is:

#3. What is the role of the Federal Reserve in the United States?

#4. What is the primary focus of microeconomics?

#5. What is the formula for calculating profit?

#6. What is a characteristic of a natural monopoly?

#7. In the law of demand, what is the relationship between price and quantity demanded?

#8. In the long run, a firm in a perfectly competitive market will produce where:

#9. The income elasticity of demand for a normal good is:

#10. If the demand for a good is elastic, what happens to total revenue when price decreases?

#11. If the price elasticity of demand is greater than 1, the demand is:

#12. What is the main determinant of the price elasticity of demand?

#13. A shift to the right in the supply curve is caused by:

#14. What is the formula for calculating the total cost of production?

#15. What is the tragedy of the commons?

#16. What is the relationship between marginal cost and average total cost in the short run?

#17. if a monopolist is practicing price discrimination, what does it mean?

#18. In a perfectly competitive market, what is the relationship between marginal revenue and price?

#19. If the cross-price elasticity of two goods is negative, they are:

#20. If the government imposes a price ceiling below the equilibrium price, what is likely to occur?

#21. A tax imposed on a good will generally result in:

#22. What does the demand curve show?

#23. In the long run, firms in a perfectly competitive market earn:

#24. Elasticity of demand measures:

#25. Which of the following is likely to result in a decrease in the supply of a good?