Unit 2 Supply, Demand and Market Structure Review

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• demand goes up
• demand goes down
• demand stays the same
• none of the above

In general, if the price of a good or service goes up, what happens to the supply for that good or service?

• supply goes up
• supply goes down
• supply stays the same
• none of  the above

What determines price?

• interaction of cost and resources
• interaction of supply and demand
• interaction of resources and supply
• interaction of demand and resources

Which of the following is an example of a good with an inelastic supply?

• beanbags

• toothbrushes

• apples

• hats

When prices rise, which of the following happens to income?

• It automatically increases by the rate of inflation

• It buys less

• Nothing

• the government raises wages

What kind of market runs most efficiently when one large firm supplies all of the output?

• A natural monopoly

• Pure competition

• A network

• Imperfect competition

This type of vehicle decreases our overall demand for gasoline in the long run

• SUV's

• Hybrids

• Big Trucks

• Older cars

A shift in the demand curve means which of the following?

• A change in demand at every price

• A rise in prices

• A decrease in both price and quantity demanded

• A change in consumer income