Supply and Demand Concepts

Front

Which country has absolute advantage in producing cheese?

Back

England

Front

Which country has comparative advantage in producing cheese?

Back

England

Front

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

Back

Supply more CDs

Front

What would be an example of a shift in the supply curve to the left? Options: A decrease in the price of raw materials, An increase in the number of producers, A natural disaster that destroys part of the production capacity, A technological advancement that makes production more efficient

Back

A natural disaster that destroys part of the production capacity

Front

How does an increase in taxes on the production of a good affect the supply curve?

Back

It shifts the supply curve to the left.

Front

What does a vertical supply curve indicate?

Back

The good is perfectly inelastic.

Front

What is the law of supply?

Back

As the price of a good increases, the quantity supplied increases.

Front

Which of the following would cause a movement along the supply curve? A change in government policy, A change in the price of the good itself, A change in the cost of production, A change in the number of suppliers

Back

A change in the price of the good itself

Front

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

Back

Buy fewer CDs

Front

What causes a movement along the demand curve?

Back

Changes in the price of the good itself