Supply and Demand

Front

What is the law of demand?

Back

When a good’s price is lower, consumers will buy more of it. When a good’s price is higher, consumers will buy less of it.

Front

A demand schedule shows ______________

Back

The listing of quantities demanded at various prices

Front

Which factor does not cause a shift of the demand curve?

• Number of sellers increase
• Consumer preferences change
• Consumer Income changes
• Consumers expect lower prices in the future

Back

Number of sellers increase

Front

What causes a movement along the demand curve?

Back

Change in price

Front

What causes a movement along the supply curve?

Back

Change in price

Front

An increase in the price of jelly causes a decrease in demand for peanut butter. The products are...

Back

Complements

Front

What can change the supply curve? Options: cost of labor, expectation that prices are about to increase, # of sellers.

Back

change in demand for the product

Front

The law of demand states that if the price of CD’s rise, consumers will:

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change
• Buy no CDs

Back

Buy fewer CDs

Front

The law of supply states that if the price of CD’s rise, suppliers will

Back

Supply more CDs

Front

Which of the following is NOT a determinant of the supply of peanut butter?

• The price of peanuts
• The wages of peanut butter factory workers
• The income of peanut butter consumers
• Existing peanut butter making technology

Back

The income of peanut butter consumers