Economics Section 2 Test Review

The demand curve slopes

• upward from left to right

• downward from left to right

• horizontal

• vertical

A supply curve slopes

• horizontal

• vertical

• upward from left to right

• downward from left to right

Equilibrium price is where supply _________ demand

• is less than

• is greater than

• equals

The quantity demanded of a product is affected by

• shortages

• price

• output

When the price of a good is too high for consumers, they look for

• substitutes

• complements

• luxury items

According to the law of supply, higher prices prompt producers to

• increase demand

• produce more

• produce less

If the price of an item rises, quantity demanded usually

• falls

• remains unchanged

• rises

When the price of a product is above its equilibrium, the result is a

• demand

• surplus

• shortage

A government-set minimum price that can be charged for goods and services is called a __________.

• price floor

• price ceiling

The amount of a good or service that producers are able and willing to sell at various prices during a specified time period

• demand

• supply

• elasticity