Supply and Demand

The elasticity on a item such as gas is:

• Very elastic
• Not inelastic
• Very responsive
• Inelastic

The following is a factor that will not cause the demand curve to shift:

• Advertising
• Population
• Price
• Consumer expectations

Which of the following best describes the Law of Demand?

• As price goes down, demand goes down. (and vice versa).
• As price goes down, demand goes up (and vice versa).
• As demand goes down, supply goes up.
• As demand goes up, price becomes elastic.

A change in quantity demanded is shown

• at various points on the demand curve
• with a new demand curve drawn above or below the original demand curve
• with a vertical line

A change in demand is shown

• along the demand curve
• with a new demand curve above or below the original demand curve
• without a demand graph
• with a totally vertical line

Consuming more of one good because of a change in price of another good is known as the 

• income effect
• substitution effect
• elasticity effect
• demand effect

A table that lists the quantity of a good that a single person will buy at each price in a market.

• demand schedule
• market demand schedule
• elasticity chart
• supply and demand graph

Consumers demand more of this type of good when their income rises.

• Normal good
• Inferior good
• Elastic good
• Substitution good

Consumers demand less of this type of good when their income rises.

• Normal good
• Inferior good
• Elastic good
• Related good

If a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?

• it will go up
• it will go down
• it will stay the same
• what does this have to do with the price of tea in China?