Answers2102320-Economics HONORS - Edgenuity TeacherCase Study: Starting a Business

Case Study: Starting a Business — Unit test Answers

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21
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Which scenario is an example of market saturation?

A
The single coffee shop in town usually has a long line of customers and tends to stay busy during business hours.
B
There are three shoe stores on one block in town, and they have trouble finding customers and making a profit.
C
A second health club will open because the only health club in town is too crowded to accept new customers.
D
It can be difficult to get reservations at the only upscale Ethiopian restaurant in town, and it is best to call in advance.
22
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The graph shows a supply curve.Which events could cause the change in supply shown on this graph? Check all that apply.

Question illustration
A
A producer goes out of business.
B
A natural disaster causes production to drop.
C
A new company joins the marketplace.
D
A company begins to produce more goods.
E
A resource needed to produce more of the good has became scarce.
23

A possible result of disequilibrium is

A
excess demand.
B
lower demand.
C
fixed prices.
D
stable availability.
24

The graph is a marginal cost curve that compares expenses for producing apple pies.According to the graph, the marginal cost begins to increase when the producer makes

Question illustration
A
two pies.
B
three pies.
C
four pies.
D
five pies.
25

The chart shows the marginal cost and marginal revenue of producing apple pies.What most likely will happen if the pie maker bakes a seventh pie?

Question illustration
A
The marginal cost will most likely decrease to $1.00
B
The marginal cost will most likely increase to $2.00
C
The marginal revenue will most likely decrease to $8.00.
D
The marginal revenue will most likely increase to $12.00.
26

combinationpricesvalue

A
combination
B
prices
C
value
27

The graph shows a point of equilibrium.If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Question illustration
A
The supply needs to increase
B
The price needs to decrease
C
The price needs to increase
D
The demand needs to increase
28

The graph shows a point of equilibrium.If quantity demanded exceeds quantity supplied, what most likely needs to happen to achieve equilibrium?

Question illustration
T
The supply needs to increase
T
The price needs to decrease
T
The price needs to increase
T
The demand needs to increase
29

[BLANK]

A
elasticity
B
quality
C
time
D
quantity
30

Which is the best title for this diagram?

Question illustration
A
The Definition of Supply
B
Factors That Affect Supply
C
Elasticity and Competition
D
The Law of Supply
31

A monopoly is a market that has

A
few competing businesses.
B
many sellers of the same item.
C
many sellers of a variety of products.
D
a single supplier of a good or service.
32

Which best describes the relationship between consumers and producers?

A
They usually ignore each other.
B
They interact with each other.
C
They agree on prices.
D
They dislike each other.
33

The chart shows the marginal cost and marginal revenue of producing apple pies. What most likely will happen if the pie maker continues to make additional pies?

Question illustration
A
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
B
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
C
The marginal costs will continue to rise, increasing the total cost, while the marginal revenue remains the same, increasing the profit earned for each pie.
D
The marginal costs will continue to fall, decreasing the total cost, while the marginal revenue remains the same, decreasing the profit earned for each pie.
34

Motherboards, Inc., manufactures computer parts. The company’s total revenue is

A
the money the company earns after paying all of its production costs.
B
the total wages the company pays workers in its factories and stores.
C
the amount of money the company earns from selling an individual part.
D
the amount the company receives from the sale of all of its computer parts.
35

Which is likely to occur if there is a price increase for a good which exhibits elastic demand?

A
People might buy a more expensive substitute good.
B
People might buy a less expensive complementary good.
C
People might buy a less expensive substitute good.
D
People might buy a more expensive complementary good.
36

In which way do producers try to differentiate themselves in monopolistic competition?

A
price
B
advertising
C
product features
D
image

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