Supply and Demand Quiz Review

Is it elastic or inelastic: Soda

What is B? (red line)

What is C? (green dot)

The law of demand states that consumers are willing to purchase more quantity at ________ prices.

You earned a bonus at work and decide to buy Jif instead of the store brand. Jif now becomes the inferior good.

Is it elastic or inelastic: Candy bar

If the price of oranges, a substitute for apples, increases. what will happen to the demand for apples?

What is A? (blue line)

Is it elastic or inelastic: medication

The government sets a limit of $10 per case of water after a hurricane. This is an example of a price floor.

If consumers expect the price of a product to be higher in the future, what will happen to the demand today?

Is it elastic or inelastic: gasoline

What is D? (purple area)

The law of supply has a direct relationship between price and quantity.

If the cost of production of Hula Hoops increases the supply curve will

What is E? (yellow area)

What is the relationship between quantity demanded and supplied at equilibrium?