The Market

The Market

By Kendrick Broadus

​Economics: Unit 2

Open Ended

What comes to mind when you see the following words: (Write something for each set of words)

Market

Supply & Demand

Shortage - Surplus

Elastic - Inelastic

Multiple Choice

If the demand for a good increases when people's incomes increase, 

• the good is an inferior good
• the law of demand is violated
• the good's demand curve must be upward sloping
• the good is a normal good

Multiple Choice

If the demand for used cars decreases after the price of a new car falls, used cars and new cars are

• inferior goods
• substitute goods
• complementary goods
• normal goods

Multiple Choice

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

• a normal good
• an inferior good
• a substitute good
• a complement to video cameras

Multiple Choice

Whenever average wages increase in the United States, hotels experience an increase in demand for their rooms. What type of goods are hotel rooms in this situation?

• normal
• inferior
• substitutes
• complements

Multiple Choice

When the price of tea increases, the demand for coffee increases. What type of goods are tea and cookies?

• normal

• inferior

• substitutes

• complements

Multiple Choice

Products that tend to be used together 

• complements 
• substitutes
• goods
• needs 

Multiple Choice

Products that can be used in a place of other products 

• substitutes 
• goods 
• substitution effect 

Multiple Choice

If demand for a good decreases when people's income increases

• The good is an inferior good

• The law of demand is violated

• The good is a normal good

• The good's demand curve is upward sloping

Multiple Choice

You normally buy a Starbucks Double Mocha Frappucino extra whipped cream, extra chocolate drizzle, extra sprinkles on your way to school everyday. You receive a 20% decrease in pay due to a recession and start buying QT coffee instead, what would this make QT coffee?

• A normal good

• An inferior good

• A complement for higher income people

• A better cup of coffee than starbucks

Multiple Choice

If the demand for flat screen TV's increase when consumers income rise, then TV's are

• A normal good

• An inferior good

• A substitute good

• A complement good

Multiple Choice

When national income decreases, Walmart notices an increase in purchases of their 'Great Value' brand goods.

• Great Value goods are normal goods

• Great value goods are complements to name brand

• Great Value goods are inferior goods

• None of the above

Multiple Choice

Which would cause a leftward shift (decrease) in the demand for Ramen noodles?

• A decrease in national income

• The price of regular noodles skyrockets

• The price of gas increase

• An increase in national income