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Supply & Demand Curve Basics Flashcards | StudBud
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Supply & Demand Curve Basics
Supply & Demand Curve Basics
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Demand & Supply Curve Basics
Flashcards
17 cards
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Questions
17
Answers
1
when supply decreases, the supply curve shifts to the
up
right
left
down
2
Demand curves typically have a _____________ slope
Negative (downward)
Vertical
Positive (upward)
Horizontal
3
When the price of an item falls, what happens to the quantity demand for that product?
quantity demand falls as well
demand falls
People substitute other goods
An increase in quantity demand
4
An increase in the price of milk shifts the demand for cereal in which direction?
left
up
right
down
5
Considering "diminishing marginal utility", as you consume more of a good...
your additional satisfaction from each extra good decreases
the price you are willing to pay for the good increases
total satisfaction you obtain from the good tends to rise
your demand for the good increases
6
Which of the following is true when a demand schedule is drawn on a graph?
The demand curve has a negative slope
All other variables except price are held constant
All 3 answers are true
Price is measured on the vertical axis
7
A supply curve typically has a ____________ slope.
Positive (upward)
Horizontal
Vertical
Negative (downward)
8
When demand decreases, the demand curve shifts to the
up
right
down
left
9
When the price of butter goes
UP
, the demand for margarine
goes up
stays the same
goes down
10
Cereal and Milk are __________ products.
Demand Inelastic
Complementary
Substitutes
Unrelated
11
After you've had a certain amount of your favorite food, your enjoyment lessens. This shows
Increasing marginal utility
Substitution Effect
Income Effect
Diminishing marginal utility
12
For most products and services, increased price results in
increased quantity demand
decreased quantity demand
13
Which of the following would not shift the demand curve for beef?
A fall in the price of beef
A change in people's tastes with respect to beef
Expectations that beef prices will fall in the future.
An increase in the incomes of beef consumers
14
Margarine and Butter are ___________ products.
Complementary
Unrelated
Substitute
Demand Inelastic
15
When prices fall for an item, what happens to the quantity supply of that good?
Diminishing marginal utility
Firms supply less quantities
Firms supply more
Supply is constant
16
A demand curve illustrates the quantity demanded at all possible prices at a given time.
False
True
17
A downward sloping curve can be explained by:
Diminishing Marginal Utility
The Substitution Effect
The Income Effect
All of these
