Unit 4 (Microeconomics) Review

Front

As the price of an item increases, the quantity demanded

Back

decreases

Front

Which statement describes the law of demand?

Back

as price rises, quantity demanded decreases

Front

A supply curve shows the relationship between quantity supplied and

Back

price

Front

A demand curve shows the relationship between quantity demanded and

Back

price

Front

What benefit do households provide for businesses?

Back

They supply consumers and workers.

Front

Which interaction illustrates the flow of services between a household and a business?

Back

A pizza business provides delivery for an additional fee.

Front

According to the Law of Supply, the quantity of products entrepreneurs offer for sale depends mostly on…

Back

the price they can charge.

Front

When Henry Ford perfected the assembly line, the supply curve for automobiles…

Back

shifted right.

Front

At a given price, if quantity demanded is greater than quantity supplied, the price is below the

Back

equilibrium price

Front

Supply is influenced by: the cost of natural resources, the cost of human resources, profitability of other options.

Back

all of these