Supply and Demand Test

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 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

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

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

This occurs when you feel like you have less money when the price of a good rises.

• Income Effect
• Substitution Effect
• Demand Effect
• Inflation 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

The demand curve always slopes

• down and to the right
• straight up and down
• down and to the left
• up and to the right

What goes on the horizontal axis of a demand graph?

• price
• quantity demanded
• quantity supplied
• change in demand

Which of the following would NOT cause a demand curve to shift?

• a change in a consumer's income level
• a change in population
• a change in a consumer's expectations
• a change in the price of a product.

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?