The law of supply states that

As price increases qs increases as price decreases qs decreases

A market is in equilibrium:

amount sellers want to sell = amount consumers want to buy

Economists use the term “demand” to refer to

a schedule of various combinations of market prices and amounts demanded

Which of the following would not shift the demand curve for beef?

a reduction in the price of cattle feed

If two goods are complements

a decrease in the price of one will increase the demand for the other

The law of demand states that

as price increases qd decreases & as price decreases qd increases

Rumson's Clothing Store's 3-for-price-of-one sale was not as successful as its 2-for-price-of-one sale. Why?

Law of Diminishing Marginal Utility

is an institution that briings together buyers and sellers

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Supply and Demand Test Review

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A#econ#blindquiz to review for sandd testl#economics#grade12

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Questions 24

Answers

1
Only producer of a special machine part raised its price on part to cover its rising costs. Demand stayed the same.
Law of Diminishing Marginal Utility
Law of Demand
Inelastic Demand
Elastic Demand
2
At the ceiling price of 30, there will more than likely be
none of the above
a surplus
no change in the prevailing market price and quantity
a shortage
3
The law of supply states that
As price increases qs increases as price decreases qs decreases
producers produce more of a good if the prices are low
price and quantity supplied are indirectly related
more producers in the market cause higher amounts to be produced
4
Demand and supply curves show that the primary variable influencing decisions to produce and buy goods is
expectations
incomes
price
preferences
5
A market is in equilibrium:
provided there is no surplus of the product.
when demand curve slopes down & supply curve slopes up
all prices above intersection of the supply & demand curves
amount sellers want to sell = amount consumers want to buy
6
Economists use the term “demand” to refer to
a particular price-quantity combination on a stable demand curve
a schedule of various combinations of market prices and amounts demanded
an upsloping line on a graph relates consumer purchases and product price
the total amount spent on a particular commodity over a stipulated time per
7
The movement from the E₁price and quantity to the E₂price and quantity is a result of a ______ effect
substitution
non-price
price
income
8
To increase lunch bz, Kemal's Restaurant gave out coupons for $1 off every lunch order. Business increased by 2%. Why?
Inelastic Demand
Law of Demand
Elastic Demand
Law of Diminishing Marginal Utility
9
Based on the graph, a decrease in demand is depicted by a
move from point x to point y
move from point y to point x
shift from D1 to D2
shift from D2 to D1
10
Which of the following would not shift the demand curve for beef?
a change in the incomes of beef consumers
a reduction in the price of cattle feed
an effective advertising campaign by pork producers
a widely publicized study that indicates beef increases one's cholesterol
11
When the price of a product rises consumers purchase other products with relatively lower prices. This describes
the substitution effect
an inferior good
the income effect
the rationing function of prices
12
The relationship between qs and price is ?, and the relationship between qd and price is ?
inverse, direct
direct, inverse
direct, direct
inverse, inverse
13
In the graph, a decrease in quantity demanded is depicted by a
shift from D1 to D2
move from point x to point y
shift from D2 to D1
move from point y to point x
14
The supply curve for a product might shift as the result of a change in
expectations of producers
the number of producers in the market
all of these
costs of inputs
15
King Pin Bowling raised its price to $10/hr for a lane. People went to Bowl O'Rama for $7/hr. Why?
Inelastic Demand
Law of Diminishing Marginal Utility
Law of Demand
Elastic Demand
16
The demand curve shows the relationship between
price and production costs
money income and quantity demanded
consumer tastes and the quantity demanded
price and quantity demanded
17
The demand curve for a product might shift as the result of a change in
consumer tastes
consumer incomes
all of these
the prices of related goods
18
If two goods are complements
they are consumed independently
a decrease in the price of one will increase the demand for the other
an increase in the price of one will increase the demand for the other
they are necessarily inferior goods
19
The law of demand states that
price and quantity demanded are directly related
consumers will buy more of a product at high prices than at low prices
the larger the number of buyers in a market the lower will be product price
as price increases qd decreases & as price decreases qd increases
20
Which of the following will not cause the demand for product K to change?
a change in the price of K
a change in consumer tastes
a change in the price of close-substitute product J
an increase in consumer incomes
21
The market equilibrium price and equilibrium quantity is
30 and 160
60 and 180
60 and 160
50 and 120
22
Rumson's Clothing Store's 3-for-price-of-one sale was not as successful as its 2-for-price-of-one sale. Why?
Law of Demand
Elastic Demand
Inelastic Demand
Law of Diminishing Marginal Utility
23
A market
entails the exchange of goods, but not services
reflects upsloping demand and downward sloping supply curves
is an institution that briings together buyers and sellers
always requires face-to-face contact between buyer and seller
24
When the price of a product increases, a consumer is able to buy less of it with given money describes
the income effect
the inflationary effect
the substitution effect
the cost effect

Supply and Demand Test Review Flashcards | StudBud