Supply and Demand Unit Review

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

If the price of printers goes down, what happens in the market for ink cartridges?

• Supply increases.
• Supply decreases.
• Demand increases.
• Demand decreases

Printers and ink cartridges are typically purchased together.  Economists would call these

• Stubstitues
• Complements
• Elastic
• Inelastic

The following is a factor that will not cause the demand curve to shift:

• Advertising
• Population
• Price
• Consumer expectations

In a market economy, who decides on the prices of goods and services?

• government
• buyers and sellers
• firms
• local leaders

Generally speaking, the lower the price, the greater the quantity demand.

• True
• False

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

When the demand for a product or service is higher than the supply this causes what?

• shortage
• consumer
• surplus
• equilibrium