Chapter 7: Demand and Supply

Which of the following is NOT a determinant of demand?

When a market operates without restriction, it creates surpluses.

Prices on goods and services are determined only by demand.

Situation in which the quantity demanded is greater than quantity supplied is called a surplus.

When a product becomes a fad, the demand curve for that product shifts to the right.

A table showing quantities supplied at different possible prices is known as a

Demand for a particular brand of coffee is probably

Upward sloping line that show in graph form the quantities supplied at each possible price.

The law of diminishing returns results in a decrease in the total output of goods.

The quantity demanded of a product is affected by

In economic terms, the marketplace exists only at the national level.

In a black market, goods are traded at illegally high prices.

There is a direct relationship between quantity demanded and price.

How does an increase in consumer population affect the demand for most products?

A government-set maximum price that can be charged for a good or service is

Rising prices signal producers to produce more and consumers to purchase less.

Which of the following is NOT a determinant of supply?

The process of freely exchanging goods and services between buyers and sellers is known as

Ability of any good to satisfy consumer wants.

Any place where you can buy food, clothing, or other items is a market.

Prices are set by voluntary exchange between buyers and sellers.

Luxury items, like expensive cars & exotic vacations, are considered to have a elastic demand.

A shift to the left in the demand curve indicates a decrease in demand.

If 2 products are complementary goods, how will a decrease in the price of one affect the other

The interaction of supply and demand determines the