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Demand & Supply
Demand & Supply
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Review of basic demand and supply concepts.
Flashcards
14 cards
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Practice quiz
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Questions
14
Answers
1
If the
price
of Good A increases and then the
demand
for Good B increases then they are considered
normal goods.
inferior goods.
substitute goods.
complementary goods.
2
Diminishing marginal utility means that each additional unit of a good consumed will have
less additional benefit than the previous unit.
decrease the total benefit of consuming the good.
the same additional benefit as the previous unit.
not change the total of consuming the good.
3
According to the law of demand, if the price of a good increases, then
supply will increase.
quantity demanded will decrease.
quantity supplied will decrease
demand will decrease.
4
A table that shows all of the possible quantities demanded at different prices is a
demand schedule.
demand curve.
demand chart.
demand chart.
5
Which of the following will
NOT
cause a change in the demand for a particular good?
income level of consumers
a change in the price of a substitute good
a change the price of the good
an increase in the number of consumers
6
A supply curve
slope upward from left to right.
all of the above are correct.
has a positive slope.
is a graphic representation of a supply schedule.
7
If your income increases and you buy less ramen noodles, then ramen noodles are considered
complementary goods.
normal goods.
inferior goods.
substitute goods.
8
Which of the following statements about demand curves is
NOT
correct?
It illustrates the inverse relationship between P and QD.
It slopes upward from left to right.
It is a graphic representation of a demand schedule.
9
You expect the price of gasoline to increase tomorrow, so fill up today. This is an example of
government regulation.
consumer expectations.
market size.
the income effect.
10
What usually occurs when new technology is applied to the production of a good?
the demand for the good increases
the supply of the good decreases
the government will intervene to maintain competition
the supply of the good increases
11
If the government wants to increase the amount of a good that is produced, it will
pass a law requiring the firms to produce the good.
place a tariff on the import of the good.
apply an excise tax to the sale of the good.
give producers of the good a subsidy.
12
Which is the best example of the law of supply
A restaurant purchases a new oven
A citrus farmer doubles his land
Perdue Chicken opens a new factory
Movie theater has multiple ticket prices based on showtimes.
13
The ________ motivates businesses to produce goods and services consumer want.
government taxation
profit incentive
customer happiness
revenue incentive
14
If good X and good Y both satisfy the same need or want then they are
complementary goods.
inferior goods.
substitute goods.
normal goods.
