What would happen to the demand for a normal good if purchasing power increased?

Demand would increase (Shift to the right)

There will be a surplus in the market when

quantity supplied is greater than quantity demanded

Complimentary goods are

tennis balls and tennis rackets

A shortage exists in a market if

the current price is below its equilibrium price.

Which of the following changes would result in a shift of the demand curve?

A change in taste and preferences

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Econ Unit 2 Review

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Questions 14

Answers

1
What would happen to the demand of an inferior good if purchasing power increased?
Demand would decrease
Supply would decrease
Quantity demanded would decrease
Quantity demanded would increase
2
If X and Y are complimentary goods and demand for good X increases. What happens to the demand for good Y?
Does a spiral
Increases
Decreases
Remains the same
3
What would happen to the demand for a normal good if purchasing power increased?
Quantity demanded would go down
Demand would increase (Shift to the right)
Demand would decrease (Shift to the left)
Supply would increase
4
There will be a surplus in the market when
quantity demanded is greater than quantity supplied
quantity supplied is greater than quantity demanded
supply is greater than demand
quantity demanded is equal to quantity supplied
5
The concept that people will buy less at higher prices and more at lower prices is...
Law of Supply
Law of diminishing marginal utility
Law of Demand
Determinant of Demand
6
Buying Adidas shoes even though you like Nike more is an example of the...
Store of Value
Income effect
Normal Goods
Substitution effect
7
What is the elasticity of this curve?
Perfectly Inelastic
Perfectly Elastic
Relatively Elastic
Relatively Inelastic
8
What is the elasticity of this curve?
Relatively Inelastic
Relatively Elastic
Perfectly Inelastic
Perfectly Elastic
9
Complimentary goods are
tennis balls and golf clubs
golf balls and tennis rackets
golf balls and fly swatters
tennis balls and tennis rackets
10
A shortage exists in a market if
All of these are correct.
there is an excess supply of the good.
quantity supplied exceeds quantity demanded.
the current price is below its equilibrium price.
11
What is the elasticity of this curve?
Relatively Inelastic
Relatively Elastic
Perfectly Elastic
Perfectly Inelastic
12
What is the elasticity of this curve?
Perfectly Elastic
Relatively Elastic
Perfectly Inelastic
Relatively Inelastic
13
The Law of Supply states that when the price increases:
The quantity stays the same
The quantity increases
The quantity is a farce
The quantity decreases
14
Which of the following changes would result in a shift of the demand curve?
A government tax
Increase in technology
A change in taste and preferences
A government subsidy

Econ Unit 2 Review Flashcards | StudBud