Unit 2 Review

A cancellation of subsidies for producers will ___________ supply.

In the U.S. prices are established mainly through

If a large number of residents moved out of the area, demand for goods/services will ______________.

The demand for silly bands have decreased because of which determinant?

What variable is on the horizontal axis of demand and supply graphs?

An increase in the number of suppliers will ______________ the supply.

The main goal of business is to

Coffee and tea are substitutes.

When supply and demand are graphed together, the information provided is

A decrease in the price of a resource used to make a product will _____________ the supply of the product.

Computers and computer software are substitute goods.

An increase in taxes on businesses will _______________ supply.

If incomes decrease, demand will __________.

What variable is on the vertical axis of supply and demand graphs?

Government price controls are used to correct unfairness in supply and demand.

Surpluses happen when the price is set __________ the equilibrium price.

Why does the supply curve slope upward?

The demand curve slopes downward because

The demand for DVDs declines when the price of DVD players rise.