Unit 2 Microeconomics Review

Front

Which statement describes the law of demand? Options: As prices rise, quantity demanded decreases, As prices rise, demand decreases., As prices fall, quantity demanded decreases., As prices fall, demand decreases.

Back

As prices rise, quantity demanded decreases

Front

Which is an example of the Law of Demand at work? Options: The price of the pizza goes up when the price of cheese goes up., Demand for pizza goes down when tacos become more popular, The price of pizza falls when the demand for pizza falls, Demand for pizza rises when the price of pizza falls

Back

Demand for pizza rises when the price of pizza falls

Front

What causes a shift in the demand curve?

Back

A change in an area other than price.

Front

The amount of a good or service that producers are willing and able to sell at all possible prices during a given period of time.

Back

Supply

Front

The market equilibrium price is the price at which

Back

the quantity demanded is the same as the quantity supplied

Front

What is the Equilibrium Price?

Back

$3

Front

When there is a shortage on iPhones, what will usually happen to the price?

Back

It will increase

Front

The diagram represents a(n)

Back

increase in supply

Front

The diagram represents a

Back

increase in demand

Front

When the demand curve shifts to the left, this suggests demand has

Back

decreased