Supply & Demand

Question 1

If two goods are compliments, an increase in the price of one good will increase demand for the other

Accepted Answer

False

Question 2

Both supply and demand are needed to determine prices

Accepted Answer

True

Question 3

Which of these are not complimentary goods?

Accepted Answer

bicycle and horseshoe

Question 4

When demand decreases the demand curve shifts

Accepted Answer

left

Question 5

When the economy is weak, demand for inferior goods...

Accepted Answer

increases

Question 6

When the price of good A rises, people drink more of good B. Good B is a complimentary good.

Accepted Answer

False

Question 7

When the price of a good increases, the quantity demanded

Accepted Answer

decreases

Question 8

When prices increase supply...

Accepted Answer

increases

Question 9

Equilibrium is...

Accepted Answer

Both A and B

Question 10

Which factor is represented on the horizonntal axis of a supply and demand graph?

Accepted Answer

quantity

Question 11

If the price of steel and aluminium increases, the supply curve for cars will shift to the left.

Accepted Answer

True

Question 12

A chart showing how much consumers are willing and able to buy at different prices

Accepted Answer

demand schedule

Question 13

On a supply and demand graph the demand curve is

Accepted Answer

descending

Question 14

A change in population is an example of a change in __________

Accepted Answer

demand

Question 15

When the price of a good decreases, supply ______________

Accepted Answer

decreases

Question 16

An "inferior" good can also be called a generic good

Accepted Answer

true

Question 17

A decrease in the price of a good is illustrated on the demand graph by

Accepted Answer

Movement of a point on the demand curve to the right

Question 18

The point on a graph where supply and demand curves meet

Accepted Answer

equilibrium

Question 19

When a buyer and seller agree on a price for a good it is known a _____________ exchange

Accepted Answer

voluntary

Question 20

If the only change is in the price of a good or service, the demand curve will _______

Accepted Answer

it will not shift

Question 21

When prices rise, supply increases

Accepted Answer

True

Question 22

When will people search for a substitute for oil?

Accepted Answer

when the price of oil is high

Question 23

All of these affect demand except

Accepted Answer

voluntary exchange

Question 24

Profit= Price- ___________

Accepted Answer

cost

Question 25

Which factor is represented on the vertical axis of a supply and demand graph?

Accepted Answer

price

Question 26

Higher prices increase demand

Accepted Answer

False

Question 27

The price of cocoa beans decreases. The supply curve for chocolate will shift to the right.

Accepted Answer

True

Question 28

On a graph, supply is represented by a(n) _____________ line

Accepted Answer

ascending

Question 29

A government payment that supports business or the market

Accepted Answer

subsidy

Question 30

When prices go down, the point on the demand curve moves right

Accepted Answer

True

Question 31

A change in "quantity demanded" is related to a change in

Accepted Answer

price

Question 32

As prices go down, demand decreases

Accepted Answer

False

Question 33

Goods whose demand rises and falls with individual incomes and the economy

Accepted Answer

normal

Question 34

When incomes rise people buy more thingamabobs. Thingamabobs are considered __________ goods.

Accepted Answer

normal

Supply & Demand

Questions 34

Supply & Demand

Questions 34