James Unit 3 Final Exam Review

Front

Which statement describes the law of demand?
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 explains why a supply line is upward sloping?

Back

the Law of Supply states there is a direct relationship between price and quantity

Front

SSEMI 2 c: What occurs to equilibrium price and quantity in a market if demand increases, but supply remains the same?

Back

Price increases, quantity increases.

Front

SSEMI2 b: Whenever a company develops a new product, an equilibrium price and quantity will eventually be determined by

Back

the interaction of buyers and sellers.

Front

SSEMI 2 c: Which describes what has happened in the graph above? Options: The increase in supply has caused an increase in equilibrium quantity., An increase in demand has caused a decrease in equilibrium price., Supply has decreased, causing an increase in equilibrium price., Demand has increased, causing an increase in equilibrium quantity.

Back

Demand has increased, causing an increase in equilibrium quantity.

Front

SSEMI 2 c: The graph above shows how a change in equilibrium price and quantity can result from

Back

a decrease in supply

Front

The principle that consumers tend to buy less of a good or service when its price increases, all else held equal, is called

Back

the law of demand

Front

According to the graph, what is the equilibrium price of movie tickets?

Back

$14

Front

Of the following, which situation could cause the shift of the demand curve from D1 to D2 in the graph above? Yogurt prices rise due to a milk shortage., Yogurt prices fall due to a milk surplus., A new health report says that yogurt makes you sick., A new health report says that yogurt keeps you healthy.

Back

A new health report says that yogurt keeps you healthy.

Front

Suppose that the government set the price of chocolate at $6 per pound. Which of the following statements best describes an effect of this price control?

Back

There would be a surplus of 40 pounds of chocolate.