An increase in the price of peanut butter will cause the demand curve

for jelly to shift to the left.

An increase in demand shifts the demand curve to the right resulting in a new equilibrium with

A higher price and a higher quantity.

The wage (price) in most labor markets is determined by:

The demand for and supply of labor.

This is an example of EQUILIBRIUM

A decrease in the demand for a good causes

a temporary surplus of that good.

The Law of Supply states:

As price increases, quantity increases.

At market equilibrium the quantity of a good buyers are willing to buy is,

the same quantity that sellers are willing to sell.

The Law of Demand states that:

As price increases,quantity decreases.

Sugar is an input used to produce candy bars. If the price of sugar increases:

The supply of candy bars will decrease.

This is an example of a DEMAND CURVE

Demand curves slope downward because there is:

An inverse relationship between price and quantity demanded

A decrease in the demand for a good causes

a temporary surplus of that good.

An increase in the number of consumers in the market for chocolate would

cause the demand curve to shift to the right.

Price is on the y axis;quantity is on the x axis.

If scientists discover that eating bacon reduces cholesterol levels,

The demand for bacon will increase

The supply curve slopes upward because there is:

a direct relationship between price and quantity supplied.

A new technology that reduces the cost of producing shoes would:

Cause the supply curve for shoes to shift to the right.

The two components of demand are

willingness to purchase and ability to pay

This is an example of a SUPPLY CURVE

Quantity is on the x-axis,price is on the y-axis.

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Questions 25

Answers

1
In a market economy,___ chooses the goods or services produced and the price paid for them.
Consumers and producers
The Federal Agency on Production and Prices (FAPP).
Congress
The Federal Reserve.
2
An increase in the price of peanut butter will cause the demand curve
for peanut butter to shift to the left.
for peanut butter to shift to the right.
for jelly to shift to the left.
for jelly to shift to the right.
3
An increase in demand shifts the demand curve to the right resulting in a new equilibrium with
A higher price and a lower quantity
A lower price and a lower quantity.
A higher price and a higher quantity.
A lower price and a higher quantity.
4
The wage (price) in most labor markets is determined by:
The supply of other inputs.
Union mandates.
Government regulations.
The demand for and supply of labor.
5
The quantity of a good or service that producers are willing and able to offer for sale.
supply
surplus
profit
demand
6
The difference between the cost of producing a good and the amount that it's sold for to buyers
demand
surplus
supply
profit
7
Graph C
This is an example of a DEMAND CURVE
This is an example of a SUPPLY CURVE
This is an example of a SURPLUS
This is an example of EQUILIBRIUM
8
A decrease in the demand for a good causes
a temporary shortage of that good.
a temporary surplus of that good.
a permanent shortage of that good.
a permanent surplus of that good.
9
The Law of Supply states:
Price changes have no effect on quantity
As price increases, quantity decreases.
Price changes shift the supply curve.
As price increases, quantity increases.
10
At market equilibrium the quantity of a good buyers are willing to buy is,
greater than the quantity sellers are willing to sell.
the same quantity that sellers are willing to sell.
11
If the demand for engineers increases, the wage (price) for engineers will:
Fewer people will enter the field.
Remain unchanged
Increase
Decrease
12
The Law of Demand states that:
Price changes shift the demand curve.
Price changes have no effect on quantity
As price increases,quantity decreases.
As price increases,quantity increases.
13
Sugar is an input used to produce candy bars. If the price of sugar increases:
The supply of candy bars will increase.
There will be a decrease in the demand for candy bars.
There will be an increasein the demand for candy bars.
The supply of candy bars will decrease.
14
Graph B
This is an example of a SUPPLY CURVE
This is an example of EQUILIBRIUM
This is an example of a DEMAND CURVE
This is an example of a SURPLUS
15
Demand curves slope downward because there is:
An inverse relationship between price and quantity demanded
A direct relationship between price and demand.
A direct relationship between price and quantity demanded.
No relationship betweenprice and quantity demanded.
16
A decrease in the demand for a good causes
a temporary surplus of that good.
a temporary shortage of that good.
a permanent surplus of that good.
permanent shortage of that good.
17
An increase in the number of consumers in the market for chocolate would
cause the demand curve to shift to the right.
cause the quantity demanded to increase.
cause movement along the demand curve.
cause the demand curve to shift to the left.
18
On a demand graph,
Supply is on the y axis,price is on the x axis.
Price is on the y axis;quantity is on the x axis.
Price is on the x axis,quantity is on the y axis.
Supply is on the x axis,price is on the y axis.
19
If scientists discover that eating bacon reduces cholesterol levels,
The demand for bacon will decrease
The demand for bacon will increase
There will be fewer pounds of bacon consumed.
There will be no effect on the consumption of bacon.
20
The supply curve slopes upward because there is:
no relationship between price and quantity supplied.
a direct relationship between price and quantity supplied.
a direct relationship between price and supply.
an inverse relationship between price and quantity .
21
A new technology that reduces the cost of producing shoes would:
Cause the supply curve for shoes to shift to the left.
Cause the quantity supplied of shoes to decrease.
Cause movement along the supply curve for shoes.
Cause the supply curve for shoes to shift to the right.
22
The quantity of a good or service that buyers are willing and able to buy.
demand
surplus
profit
supply
23
The two components of demand are
willingness to purchase and ability to pay
ability to purchase and ability to pay
willingness to pay and ability to pay
ability to purchase and willingness to pay
24
Graph A
This is an example of a DEMAND CURVE
This is an example of EQUILIBRIUM
This is an example of a SUPPLY CURVE
This is an example of a SURPLUS
25
On a supply graph:
Price is on the x-axis,supply is on the y-axis.
Quantity is on the x-axis,price is on the y-axis.
Supply is on the x-axis,price is on the y-axis.
Price is on the x-axis,quantity is on the y- axis.

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