The Law of Demand Says

As price increases, quantity demanded decreases.

The cost of bread increases, so there is a

movement up along the demand line for bread

The image represents the

the flow of income, resources and goods through the economy.

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Demand Practice

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#Law of demand, #microeconmics

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Questions 24

Answers

1
Quantities offered for sale at all possible prices
Law of Demand
Law of Supply
Supply
Demand
2
Which market contains only a few companies?
Monopoly
Oligopoly
Imperfect competition
Perfect competition
3
Rihanna is advertising her new make up line, sales soar. Determinant?
Population
Expectations in the Market
Taste & Trend
Taxes
4
What does the table represent?
The cost of milk.
The flow of income.
The variations in cost and quantity of milk.
The law of demand.
5
The meeting point of supply and demand
Supply
Cost of profit
Equilibrium
Demand
6
Which market contains the most competitors?
perfect competition
oligopoly
imperfect competition
monopoly
7
If demand and supply shift to the right , then_____ is demonstrated
Recession
Increase
Decrease
Movement along the line
8
As prices increase, so does the product
Supply
Demand
Law of Supply
Law of Demand
9
The Law of Demand Says
As price increases, everything remains high.
As price increases, so does inflation.
As price increases so does quantity demanded.
As price increases, quantity demanded decreases.
10
The shifting factors for demand are NOT
taste and preference.
population shifts.
income levels.
increase in price.
11
What is represented by the shifts on the graph?
Growth
Movement along the line.
Increase in demand
Decrease in demand
12
Monopolies can form naturally in the utilities market.
False
True
13
This graph demonstrates...
cost of demand
profit
market clearing price
cost of supply
14
Sole proprietorships offer...
More Liability than a typical store.
Unlimited Liability
Limited Liability
Less Liability than a typical store
15
List the 2 major markets in the circular flow diagram.
Government and Factor Market
Businesses and Households
Factor and Product markets
Demand and Supply
16
The cost of bread increases, so there is a
movement up along the demand line for bread
shift of demand to the right in the bread market
movement down, along the demand line for bread
shift of demand to the left in the bread market
17
Which market is the hardest to enter?
oligopoly
imperfect market
perfect market
monopoly
18
Where is rent paid in the circular flow model?
Labor Section
Unemployment
Product Market
Factor Market
19
If you are looking for a job, you are interacting in the...
Labor Section
Product Market
Factor Market
Unemployed
20
The image represents the
the flow of income, resources and goods through the economy.
the overall spending for the economy.
the flow of income in the US.
the mix of government and the market.
21
Oligopolies may possess opportunity for price leadership
True
False
22
The households provide the factor market with...
Labor
Profit
Demand
Supply
23
All of the following can change "supply", EXCEPT
the expectation that prices will increase
the number of sellers in the market
Taste and Preference
Cost of inputs
24
Which business possesses the most liability?
sole proprietorship
merger
corporation
partnership

Demand Practice Flashcards | StudBud