WGU C718 Quiz Latest Update with Certified Solutions

WGU C718 Quiz Latest Update with Certified Solutions A change in income will lead to a shift of the demand curve. What would we expect to happen if consumer income increased? Demand increases Supply Schedule a table that shows quantities supplied at different prices during a particular period Supply Curve is a graphical representation of a supply schedule. a change in quantity supplied A change in price causes a movement along the supply curve a supply shifter A variable that can change the quantity of a good or service supplied at each price is called A change in supply results from a change in a supply shifter implies a shift of the supply curve to the right or left. an increase in supply is an increase in the quantity supplied at each price and shifts the supply curve in the direction of increased quantity on the horizontal axis Which of the variables is not considered a supply shifter? Buyer expectations A shift in a demand or supply curve changes the equilibrium price and equilibrium quantity for a good or service. The equilibrium price is the price at which the quantity demanded equals the quantity supplied. what affect does an increase in the number of buyers have on the total quantity of a good or service? The greater the number of buyers, the greater the demand. Perfectly inelastic demand means that the change in quantity is zero for any percentage change in price; the demand curve in this case is vertical. When the price elasticity of demand is unit elastic the percent change in price will cause an equivalent percent change. What type of elasticity is this an example of? Positive cross price elasticity Supply is price elastic if it is greater than 1. Supply is unit price elastic if it is equal to 1 Supply is price inelastic if it is less than 1 Which demand characteristic can be classified as unit elastic? Price elasticity of demand equals 1 all along the demand curve Demand is vertical no matter what the price is the same amount is always sold represents a perfectly inelastic demand What is true of a normal good? An increase in income means an increase in demand. Which demand characteristic can be classified as unit elastic? Price elasticity of demand equals 1 all along the demand curve Which demand characteristic can be classified as perfectly elastic? Price elasticity of demand equals 1 all along demand curve The elasticity of demand must be greater than one because when price increased, total revenue fell. 20%/15% or 1.33. What does the failure to carry out an activity at the efficient level cause? Deadweight loss Which describes producer surplus? The amount that a seller is paid for a good minus the seller's actual cost. changes in price do not cause demand or supply to change. Removing price control measures will eliminate deadweight loss, thereby increasing social surplus. The amount by which an additional unit of activity increases one's total benefit describes which concept? Marginal benefit the difference between the total benefit and the opportunity cost of an activity Net benefit Consumer surplus the marginal benefit received by consumers in excess of the market price What would be the impact of imposing a price ceiling below the equilibrium price? Quantity demanded will exceed quantity supplied, resulting in a shortage. Which statement is an example of command-and-control policy? The U.S. government makes it a policy to use only predetermined CO2 emission reducing technologies. three main categories of market-oriented approaches to pollution control pollution charges, marketable permits, and better-defined property rights. Whatzits will pay 9% for borrowed funds but receive 5% in social benefits. The net cost of borrowing is therefore 9 − 5 = 4 Whatzits will invest $183 million in R&D. imperfect information not all the information necessary to make an informed decision is known to the buyers and/or sellers Asymmetric information the condition where one party, either the buyer or the seller, has more information about the quality or price of the product than the other party