EPF Unit 4: Supply, Demand, and Equilibrium (Ch. 5-6)

Which of the following does not determine the demand for a good?

The demand curve slopes in a(n) ______ direction.

How does a government subsidy affect a market?

A decrease in price causes the quantity demanded to

An effective price ceiling would be set at a price

The law of demand states that there is a(n) ___ relationship between price and quantity demanded?

If the government increases the gasoline tax,

What happens to supply when there is a decrease in demand?

An effective price floor causes a(n)

When there is a shortage what should be done to reach equilibrium?

A movement downward to the right along the demand curve is called a(n)

If the cost of making cars falls, the supply _______ and the demand ________.

The law of supply states that as the price of a good increases, the quantity supplied by firms

If the demand for a good decreases, the equilibrium price will _______ and the quantity will _______

The ideal price level is known as

Complementary goods are

If the cost of making cars increases, the price of cars will _______ and the quantity of cars sold will ______.

The demand for an inferior good

Which of the following causes the demand curve to shift to the right?

Factors that cause the demand curve to shift include a change in all of the following except?