Which of the following is true of the Law of Demand?

As the price of a good falls, consumers will demand more.

How does new technology generally affect production?

It lower costs and increases supply.

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Unit 3 Supply and Demand Review

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Supply and demand review quiz

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Questions 12

Answers

1
Which of the following is an example of an inferior good?
Lobster
Caviar
Steak
Ramen noodles
2
What curve is the demand curve?
D
E
C
3
Which of the following is true of the Law of Demand?
As the price of a good increases, consumers will demand more
If production cost rises, producers will offer more goods.
As the price of a good falls, consumers will demand more.
At equilibrium, buyers and sellers are neither satisfied
4
A bakery has a surplus at the end of each day. What should the owner do?
sell only bread
raise the price of bread
stop selling bread
lower the price of bread
5
What do you call points A and B?
Balance
Stability
Perfect Competition
Equilibrium
6
Which of the following is an example of a product with inelastic supply?
Action Figures
Space Ships
Houses
Silly Bands
7
If QD for a good changes as the price changes, demand for that good can be said to be
Redistributed
Inelastic
Static
Elastic
8
What happens to the price of a good when there is excess demand?
The price goes down.
The price stays the same.
The price goes up.
The government sets the price.
9
Which of the following is an example of a product with inelastic demand?
Medicine
Concert tickets
Steak
Movie tickets
10
Which of the following goods are NOT complementary?
Cereal and milk
Jeans and shoes.
Xbox and game controller
Skis and ski boots
11
How does new technology generally affect production?
It increases cost and descreases supply.
It lower costs and increases supply.
It has very little effect on production.
It lowers cost and decreases supply.
12
A restaurant owner has not changed menu pricesin a year.What could explain a 50% drop in sales?
A local newspaper praised the restaurant's food
A nearby factory shut down.
Area population increased.
Gas prices decreased.

Unit 3 Supply and Demand Review Flashcards | StudBud