Use the graph below to answer the question.The increase in demand shown above could be a result of

An increase in consumers’ incomes.

The clearest manner by which to determine equilibrium price is

The use of Demand and Supply curves.

The reason why the Demand Curve slopes downward is because

There is an inverse relationship between price and quantity demanded.

The economic justification for die-hard Coca-Cola buyers to buy Pepsi products when Coca-Cola products are too expensive

Pepsi would be considered to be a substitute good.

When a product’s price is below equilibrium, what is the result?

There is a shortage, because quantity demanded exceeds quantity supplied.

What would be the economic justification for a baker to make use of margarine in a recipe when butter is too expensive?

Margarine would be considered to be a substitute good.

studbud

Unit 1.2 - Supply and Demand

12 termsStudBud Administration467 plays

Imported from external platform

Flashcards12 cardsFPractice quizPHost liveL

Questions 12

Answers

1
If the price of a substitute good ______, the demand for the good being analyzed _____.
rises; Increases
rises; decreases
falls; stays the same
falls; increases
2
Use the graph below to answer the question.The increase in demand shown above could be a result of
People no longer like the product
A lower price
An increase in consumers’ incomes.
Lower production costs.
3
The clearest manner by which to determine equilibrium price is
The use of Demand and Supply curves.
The use of Demand and Supply schedules
The use of a Supply curve only.
The use of a Demand curve only.
4
Which of the following factors will not shift the Demand or Supply curve?
The price of complementary goods.
The price of the good
The advancement of technology.
Consumer tastes and preferences.
5
The reason why the Demand Curve slopes downward is because
There is an inverse relationship between price and quantity demanded.
Producers only make more of a good when they can make more money.
Opportunity cost of producing more goods increases with each new product.
People don’t like to spend more money than they have to.
6
The economic justification for die-hard Coca-Cola buyers to buy Pepsi products when Coca-Cola products are too expensive
Coca-Cola would be considered to be a complementary good.
epsi would be considered to be a complementary good.
Coca-Cola would be considered to be a substitute good.
Pepsi would be considered to be a substitute good.
7
__________ is a determinant of Demand.
Competition
Market size
Joint Supply
Government
8
How would an increase in production costs affect your Supply curve?
No shift
Shift curve outward
Move along the curve
Shift curve inward
9
Peanut butter and jelly are ____ goods.
Substitute
Normal
Inferior
Complementary
10
When a product’s price is below equilibrium, what is the result?
There is a surplus, because quantity supplied exceeds quantity demanded.
There is a shortage, because quantity demanded exceeds quantity supplied.
There is a surplus, because quantity demanded exceeds quantity supplied.
There is a shortage, because quantity supplied exceeds quantity demanded.
11
What would be the economic justification for a baker to make use of margarine in a recipe when butter is too expensive?
Butter would be considered to be a complementary good.
Butter would be considered to be a substitute good.
Margarine would be considered to be a complementary good.
Margarine would be considered to be a substitute good.
12
Which way will your demand curve shift if the price of a complementary good increases?
No Shift
Inward
Outward
Will move along the curve instead

Unit 1.2 - Supply and Demand Flashcards | StudBud