Exam Study Guide Featuring Supply and Demand

Front

If the price of printers goes down, what happens in the market for ink cartridges?

Back

Demand increases.

Front

Generally speaking, the lower the price, the greater the quantity demand.

Back

True

Front

For the law of demand, as price rises, what happens to quantity demanded?

Back

it goes down

Front

For the law of supply, as price rises, what happens to quantity supplied?

Back

it goes up

Front

What will happen to the price of gas on a stretch of highway when one gas station is joined by two more, given that demand for gas does not change?

Back

The price of gas will decrease because there is more competition among businesses.

Front

Part of the reason that LeBron James earns millions of dollars each year while school teachers may earn $30,000 is because…

Back

consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials., the supply of superstar basketball players is low, while the supply of competent teachers is much larger., demand for LeBron James' talents is very high since he can generate so much revenue for a firm.

Front

Which of the following could cause the price for automobiles to decrease? A brand new automobile dealership opens in town., The local factory gives a big raise to its employees., The price of gasoline falls.

Back

A brand new automobile dealership opens in town.

Front

If the cost of computers falls, then…

Back

the demand for computers goes up.

Front

Which of the following could cause the demand for airline travel to decrease? Options: The price for traveling by airplane decreases, The price of traveling by airplane remains the same, The price for traveling by airplane increases, None of the choices

Back

The price for traveling by airplane increases

Front

What will happen to the price of watermelons if farmers in California have produced the largest crop in years?

Back

The price will go down.