UNIT 2 Review - Microeconomics: Prices and Markets

Front

The Law of Demand states that:

Back

more will be purchased at low prices than at higher ones.

Front

The demand curve is always:

Back

downward sloping.

Front

Buying only one drink instead of two drinks at lunch time describes what concept?

Back

diminishing marginal utility

Front

Which of the following statements accurately describes the demand curve? It shows an inverse relationship between the price of an item and the quantity demanded.

Back

It shows an inverse relationship between the price of an item and the quantity demanded.

Front

What is the main difference between the individual demand curve and the market demand curve?

Back

Only the market demand curve shows demand for everyone in the market.

Front

Which of the following would cause a change in the quantity demanded for a product? decreasing the price of a product, changing prices of related products, changing consumer tastes, increasing consumer income

Back

decreasing the price of a product

Front

How does the demand curve show an increase in demand?

Back

The curve shifts right.

Front

How does the change in the price of a good affect its complement?

Back

An increase in the price of a good usually leads to a decrease in the demand for its complement.

Front

Which of the following is an example of substitutes? butter and margarine, computers and software, flashlights and batteries, cameras and film

Back

butter and margarine

Front

A change in the number of consumers can cause:

Back

the market demand curve to shift.