Econ Supply and Demand Quiz

The law of demand...

• the desire to own something. 
• •when a good’s price is lower, consumers will buy more of it. When a good’s price is higher, consumers will less more of it.
• • describes how much of a good is offered for sale at a specific price. 
• the higher the price, the larger the quantity produced. 

An increase in the price of jelly causes a decrease in demand of peanut butter. The products are

• Subsitutes
• Complements
• Unrelated
• Demand Elastic 

A demand schedule shows ______________.

• The listing of quantities demanded at various prices
• the upward sloping curve
• fluctuations in demand that occured over time
• the flucutations of demand that are to come in following year

Consumer willingness to replace a costly item with a less costly item is?

• The substitution effect
• the income effect
• Complementary
• unit elastic 

When a products need is not urgent, demand is 

• inelastic 
• elastic
• complementary
• unit elastic

All of the following can change the supply curve EXCEPT

• cost of labor
• expectation that prices are about to increase
• change in demand for the product
• # of sellers

If a market is at equilibrium and if there is a sudden increase in demand, you have a 

• surplus
• shortage
• Stays the same

When quantity supplied is greater than quantity demanded, you have a ____________.

• shortage
• surplus
• deficit
• equilibrium

Price that "clears the market" 

• Equilibrium Price
• Income Effect
• Marginal Utility
• Surplus

Decline in satisfaction with the addition of 1 more quanitity

• Diminishing Marginal Utility
• Shortage
• Marginal Utility
• Income Effect