On a market demand and supply graph, the point of market equilibrium always happens

at the point where demand and supply curves intersect

Higher prices generally

motivate producers to enter a market

Which of the following is an example of supply?

Ann has a commercial oven & bakes wedding cakes for friends.

a provider of goods or services

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Unit 2 Review

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Economics Unit 2 Review

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Questions 14

Answers

1
When producers supply more, equilibrium price will
stay the same
fluctuate
fall
rise
2
Which is a teenage most likely to have demand for?
athletic shoes
building blocks
luxury condominium
new sports car
3
When consumers demand more goods and services at every price, equilibrium price will
fall
rise
fluctuate
stay the same
4
Lower prices generally
discourage consumers from seeking a substitute
motivate producers to enter a market
motivate consumers to buy
discourage producers from entering a market
5
On a market demand and supply graph, the point of market equilibrium always happens
at the center point of the graph, irrespective of the curves
at the highest point on the demand curve
at the lowest point of the supply curve
at the point where demand and supply curves intersect
6
The maximum amount that sellers may charge for a good or service is called a
maximum wage
price ceiling
minimum wage
price floor
7
The minimum amount that sellers may charge for a good or service is called a
maximum wage
price floor
price ceiling
minimum wage
8
Higher prices generally
motivate producers to enter a market
motivate consumers to buy
discourage producers from entering a market
discourage consumers from seeking a substitute
9
Which of the following is an example of supply?
Frank owns a restaurant, but his license was revoked.
Tyler is a mechanic, but he no longer takes repair jobs.
Jolene is studying to be a hairdresser at Porter County.
Ann has a commercial oven & bakes wedding cakes for friends.
10
What term is defined as goods that consumers demand more of when their income rises?
substitute
complementary
normal
inferior
11
According to the law of demand, what happens when prices go down?
Demand increases.
Quantity demanded decreases.
Demand decreases.
Quantity demanded increases.
12
What do the different points on a demand curve represent?
change in consumer taste
change in demand
change in quantity demanded
change in market size
13
According to the law of supply, when price increases,
supply increases.
demand increases.
quantity demanded increases.
quantity supplied increases.
14
Who is a producer?
a manufacturer of goods
a provider of financial services
a buyer of goods or services
a provider of goods or services

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