2.1 Supply and Demand

Which of the following is not a characteristic of demand?

• willingness
• desire
• surplus
• ability

Which of the following terms describes the primary objective of any business?

• demand
• profit
• supply
• money

Economists use a supply curve to 

• show the law of supply in chart form
• show the law of supply in graph form
• show the law of supply in table form
• show the law of supply in a written description

The demand curve is plotted by using a product's....

• prices and qualities
• production costs and qualities
• prices and quantities
• production costs and quantities

On a curve, an increase in demand causes the demand curve to

• fluctuate both right and left
• shift to the left
• shift to the right
• stay in the same position

This factor has the greatest impact in determining what consumers want to buy

• Price

• Color

• Features

• Battery life

This image represents:

• An increase in quantity demanded

• A demand schedule

• The law of demand

• The law of supply

This image best represents:

• An increase in demand

• A decrease in demand

• A decrease in quantity demanded

• An increase in quantity demanded

According to the law of demand, the relationship between "price" and "quantity demanded" is:

• Inverse

• Direct

• Not correlated

This graph represents a(n):

• Decrease in supply

• Decrease in demand

• Increase in quantity demanded

• Decrease in quantity supplied