According the the law of demand

As the price per unit increases, consumers will demand less

slopes upward from left to right

What does the law of supply state?

Producers are willing to sell more at a higher price

A complimentary good is

a good that is related to another, and can impact the other

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Supply/ Demand/ Equilibrium Review

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An #economics review for Supply, Demand and Equilibrium

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Questions 12

Answers

1
According the the law of demand
As the price per unit decreases, consumers will demand less
As the price per unit increases, consumers will demand less
none of the above
As the price per unit increases, consumers will demand more
2
A supply curve
slopes upward from left to right
slopes downward to the right
is parallel to the x axis
is parallel to the y axis
3
In order to eliminate a surplus:
quantity supplied must rise
quantity demanded must fall
prices must rise
prices must fall
4
Which costs do business owners incur no matter what the level of production output is?
fixed costs
specialization
marginal costs
total costs
5
What does the law of supply state?
Producers are willing to sell more at a higher price
Supply remains the same if all other factors remain the same
Supply increases or decreases by the same % as price
Using research, producers can learn the quantity supplied
6
A change in supply (a shift in the curve) can happen due to:
A change in producers' expectations
A change in the number of suppliers
A change in the price of resources
All of the above
7
The change in total output brought by adding one more worker is called
increasing returns
variable product
marginal product
total returns
8
How can a shortage be eliminated?
Raising Prices
Lowering Prices
Trusting the market
Supplying more product
9
Wages, materials, shipping and other expenses that change from time to time are examples of
specialization
marginal costs
fixed costs
variable costs
10
a good that can replace another good is called
compliment
alternative liability
substitute
a trade off
11
A complimentary good is
a good that can easily replace another good
a good that is unrelated to another good
a good that is related to another, and can impact the other
12
Diminishing marginal utility is measurement of satisfaction of a product over time
True
False

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