Which of the following is NOT a characteristic of a demand curve?

There is a direct relationship between price and quantity.

A change in demand is

when consumers buy a different quantity at every price.

Which of the following statements would be an example of a decrease in demand?

Buyers learned energy drinks cause heart attacks.

According to the law of demand,

as price decreases quantity demanded increases.

How would a negative news about a product affect a supply and demand graph?

The demand curve would shift to the left.

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Eco Review 2

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Questions 20

Answers

1
What condition exists if quantity supply is greater than quantity demanded?
Shortage
Surplus
Excess demand
Equilibrium
2
What is happening if the price of Coke goes up and people buy less of it and more Pepsi?
Income effect
Substitution effect
Equilibrium
Complementary effect
3
How do producers react to rising prices?
Producer use fewer raw materials
Produce more
Produce less
High prices have no effect on supply
4
Which of the following is NOT a characteristic of a demand curve?
As price goes down, quantity demanded goes up.
As prices go up, quantity demanded goes down.
There is a direct relationship between price and quantity.
The curve is downward sloping to the right.
5
What is the condition called when quantity supplied equals quantity demanded?
Price floor
Surplus
Equilibrium
Shortage
6
If demand increases and supply decreases, what happens to price?
Price increases
Price stays the same
Price decreases
Quantity stays the same
7
When the government makes a payment to support an industry it is called a(n)
complement.
subsidy.
determinant.
incentive.
8
A change in demand is
a change in consumer expectations.
a movement along the demand curve.
when consumers buy a different quantity at every price.
the result of increased production.
9
What is the equilibrium price?
$4
$1
$3
$2
10
How does an increase in input costs affect a supply and demand graph?
Supply curve moves to the left
Supply curve moves to the right
Demand curve moves to the left
Demand curve moves to the right
11
What is the primary difference between pure competition and monopolistic competition?
Perfect competition has many sellers, monopolistic has a few
Location of firms
Types of products sold
Price of goods sold
12
Which of the following statements would be an example of a decrease in demand?
It was announced students are buying 50% more hot Cheetos.
Buyers learned energy drinks cause heart attacks.
A sale on Cheerios affects the consumption of milk.
An oil field had a 10% increase in production.
13
According to the law of demand,
price doesn't affect the quantity consumers buy.
demand decreases and prices decrease.
supply is the major factor in determining price.
as price decreases quantity demanded increases.
14
The amount of a good a producer is willing to sell at each possible price is
supply.
inventory.
demand.
production possibilities.
15
Which of the following is NOT a characteristic of a sole proprietorship?
Complete ownership
Shared responsibilities
Difficult to raise capital
Unlimited liability
16
How do corporations raise money?
Selling stocks and bonds
A pay cut for management
Creating new products
Increasing production of best selling products
17
Which of the following is NOT a non-price determinant of demand?
Consumer taste and advertising
Income
Substitute Goods
Subsidy
18
Which would of the following is the best example of an oligopoly?
National Football League
American automobile industry
Old Navy
Roadside stand selling honey
19
What type of products are sold in perfect competition?
Unique products
Similar products
A wide variety of products
Identical products
20
How would a negative news about a product affect a supply and demand graph?
The supply curve would shift to the left.
The demand curve would shift to the right.
The supply curve would shift to the right.
The demand curve would shift to the left.

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