BE UNIT 2 Test

Demand is likely to be most elastic for concert tickets.

What creates demand for goods and services?

Which of the following determines whether consumers can purchase goods or services:

In economics, supply refers to the quantity of a good or service that sellers

Which of the following is characteristic of a seller’s market:

One reason why the supply of certain products has been eliminated is because of

What is the amount of money for which an item sells in the competitive marketplace?

When the price of Bluetooth speakers increases, the quantity of Bluetooth speakers offered for sale will increase.

Which of the following would affect demand for a consumer magazine

When demand is greater than supply, a __________ often develops.

What usually happens to the demand for a good or service when the price increases?

Most businesses strive to supply goods and services in direct proportion to

What is one factor that will determine how much a customer is willing to pay for a good or service?

        Inelastic demand is not affected by price change.

Prices set higher than the equilibrium price will result in excess supply.

How are prices used in our economy?

Demand for a good is more likely to be elastic when the good is a luxury

Information about prices is what consumers, producers, and resource owners need to have to make economic decisions

Any factor that causes changes in supply and demand will cause changes in value.

Bread is an inelastic demand.

After a mild, dry winter, supply of sleds should be __________ than demanded. Therefore, the price would be __________.

.           A local neighborhood has many houses for sale at a low price, but demand for the houses is low.

Excess demand and excess supply cause changes in price index.

The price of complementary products has an effect on

Government regulations might cause supply of a good to decrease.

Who gets the goods and services produced in our economy?

Cost of production is a primary factor that determines supply.

Producers are willing to manufacture more of a product when its selling price is increased.

Which of the following factors affects consumers' decisions to buy goods or services

Natural disasters are factors which may influence supply.

Which of the following is a factor affecting a product’s utility to the individual customer:

As prices decrease, consumer demand usually

How do producers answer the economic question of what to produce in a market economy?

How much a consumer is willing to pay for a product depends partly on the consumer’s opinion of the product’s

Expansions are the incentives in our economy that encourage producers to change and reallocate their resources.