Econ Micro Review

What term refers to studying small economics like businesses and people?

• Economics
• Macroeconomics
• Microeconomics
• Personal Finance

Which of the following explains the law of demand?

• When price goes up, quantity demanded goes up.
• When price goes down, quantity demanded goes down.
• When price goes up, quantity supplied goes up.
• When price goes down, quantity supplied goes down.

Which of the following explains the law of supply?

• When price goes up, quantity demanded goes up.
• When price goes down, quantity demanded goes down.
• When price goes up, quantity supplied goes up.
• When price goes down, quantity supplied goes down.

What term refers to a factor that causes the supply or demand curve to shift?

• Determinant
• Demand
• Supply
• Elasticity

This is when the % change in price is GREATER than the percent change in demand.

• Elastic Supply
• Inelastic Supply
• Price Floor
• Price Ceiling

This is when the % change in price is LESS than the percent change in demand.

• Elastic Supply
• Inelastic Supply
• Price Floor
• Price Ceiling

This is when quantity SUPPLIED is higher than quantity DEMANDED.

• Price Floor
• Price Ceiling
• Surplus
• Shortage

This is when quantity SUPPLIED is lower than quantity DEMANDED.

• Price Floor
• Price Ceiling
• Surplus
• Shortage

This is when quantity DEMANDED is lower than quantity SUPPLIED.

• Price Floor
• Price Ceiling
• Surplus
• Shortage

This is when quantity DEMANDED is higher than quantity SUPPLIED.

• Price Floor
• Price Ceiling
• Surplus
• Shortage