Supply and Demand Unit 2 review

Quantity Demanded moves along the curve in response to change in

• Price
• Income
• Preferences
• Expectations

Supply depends on the willingness and ability of 

• Donors to contribute
• Producers to produce
• Advertisers to Promote
• Consumers to purchase

the law of demand states that as quantity demanded decreases

• Wages decrease
• Production Increases
• Price increases
• Quality decreases

According to the law of supply, what happens as price incrases

• The quantity supplied increases
• The quantity supplied decrases
• The supply curve shifts to the left
• The supply curve shifts to the right

Which of these would MOST LIKELY increase the supply of soccer balls?

• a transportation strike
• a government excise tax
• A decrease in the price of raw materials
• An increase in the supply of tennis balls

As the  price of a good increases, which of the following is generally true?

• sellers want to produce and sell more of the good, while buyers want to purchase less
• Sellers want to produce and sell more of the good, and buyers want to purchase more
• Sellers want to produce and sell less of the good, while buyers want to purchase more
• Sellers want to produce and sell less of the good, and buyers want to purchase less

At a price higher than the market clearing price/ equilibrium  price, which of the following is true?

• A surplus will exist, which will cause the price to increase
• A surplus will exist, which will cause the price to decrease
• A shortage will exist, which will cause the price to increase
• A shortage will exist, which will cause the price to crease

How are prices determined in the markets in market-based economies? 

• They are set and regulated by the government in the best interest of everyone
• They are set solely by sellers acting in their own self-interest
• They are negotiated by buyers and sellers interacting n their own self-interest
• They are determined by economists through sanaylyses of supply and demand curves

According to the law of demand, when all other factors are held constant, the higher the price, the greater quantity supplied

• True

• False

Which of the following would cause a supply curve to shift the left?

• The cost of resources needed to produce a good increases

• The government lowers taxes on the import of a good

• The technology used to produce a good improves

• The number of sellers of a particular good increases