Admin Table of Contents
- 1 What factors can cause the market to behave inefficiently?
- 2 What happens when any market is in disequilibrium and prices are flexible?
- 3 Which of the following is a situation that makes the market behave inefficiently quizlet?
- 4 What factor has the greatest influence on elasticity and inelasticity of supply?
- 5 What causes movement along the supply curve?
- 6 What are the factors that shift the supply curve?
- 7 Which is an example of an inefficient stock market?
- 8 Which is an example of an efficient market?
What factors can cause the market to behave inefficiently?
Market inefficiencies exist due to information asymmetries, transaction costs, market psychology, and human emotion, among other reasons.
What happens when any market is in disequilibrium and prices are flexible?
Whenever the market is in disequilibrium and prices are flexible, market forces will push the market toward the equilibrium.
What happens to a market in equilibrium when supply increases?
An increase in supply will cause a reduction in the equilibrium price and an inase in the equilibrium quantity of a good. An dcrease in supply will cause an increase in the equilibrium price and a decrease in the equilibrium quantity of a good. 1. The decrease in supply creates an excess demand at the initial price.
Which of the following could cause the supply curve of a good shift to the right?
When a firm discovers a new technology that allows it to produce at a lower cost, the supply curve will shift to the right as well. A technological improvement that reduces costs of production will shift supply to the right, causing a greater quantity to be produced at any given price.
Which of the following is a situation that makes the market behave inefficiently quizlet?
Which of the following is a situation that makes the market behave inefficiently? When consumers do not have enough information to make good choices.
What factor has the greatest influence on elasticity and inelasticity of supply?
ECONOMICS UNIT 2 REVIEW
| A | B |
|---|---|
| What factor has the greatest influence on elasticity and inelasticity of supply? | time |
| Which of the following is a fixed cost for a store? | rent |
| an example of government influence on supply? | subsidies |
| The amount consumers have available to spend on goods and services | Purchasing Power |
What happens when the market is in disequilibrium?
in a market setting, disequilibrium occurs when quantity supplied is not equal to the quantity demanded; when a market is experiencing a disequilibrium, there will be either a shortage or a surplus.
What are the factors that affect market equilibrium?
They include all those influences such as consumers’ preferences, incomes, technological change, the cost of inputs, climate etc. Endogenous variables are those which lie within the market system. There are three of them: the price of a good, the quantity of the good supplied, and the quantity demanded.
What causes movement along the supply curve?
Therefore, a movement along the supply curve will occur when the price of the good changes and the quantity supplied changes by the original supply relationship. In other words, a movement occurs when a change in quantity supplied is caused only by a change in price and vice versa.
What are the factors that shift the supply curve?
Factors that can shift the supply curve for goods and services, causing a different quantity to be supplied at any given price, include input prices, natural conditions, changes in technology, and government taxes, regulations, or subsidies.
Which is a situation that makes the market behave inefficiently?
A situation that makes the market behave inefficiently is when consumers do not have enough information to make good choices. Log in for more information. This answer has been confirmed as correct and helpful. Rationing is most likely to lead directly to a black market. Log in for more information.
Why are there so many inefficiencies in the market?
Market inefficiencies exist due to information asymmetries, transaction costs, market psychology, and human emotion, among other reasons. As a result, some assets may be over- or under-valued in the market, creating opportunities for excess profits.
Which is an example of an inefficient stock market?
What is an ‘Inefficient Market’. In an efficient stock market, for example, all publicly available information about the stock is fully reflected in its price. In an inefficient market, in contrast, all the publicly available information is not reflected in the price, suggesting that bargains are available.
Which is an example of an efficient market?
The efficient market hypothesis (EMH) holds that in an efficiently working market, asset prices always accurately reflect the asset’s true value. For example, all publicly available information about a stock should be fully reflected in its current market price.