Unit 2: Market Equilibrium

What does it mean when an economists says that a consumer has demand for a good or service

• The consumer is able to afford the good or service, but is unwilling to buy it.

• The consumer wants the good or service, but may not actually have the money for it.

• The consumer is able to buy the good or service, but not at the price demanded.

• The consumer is willing and able to buy the good or service at the specified price.

What is the basic principle of the law of demand?

• The higher the price, the more consumer will buy

• The lower the price, the less consumers will buy

• The lower the price, the more consumers will buy

• The lower the price, the more consumers will substitute

How would the illustration at right affect consumer behavior?

• a change/shift in demand

• a change/shift in supply

• a change in quantity demanded

• a change/shift in supply, but not demand

If the price of both green and red salsas decrease, what would be the effect on the demand for tortilla chips?

• demand for tortilla chips would increase, demand curve would shift right

• demand curve would shift left, due to increased demand for tortilla chips

• demand curve for tortilla chips would not shift

• demand for tortilla chips would decrease, demand curve would shift left

Which of the following is an example of complements?

• baseball glove and soccer ball

• row boat and jet ski

• laptop and charging cord

• calculator and cell phone

How ca expectations about a future price change consumer behavior?

• Immediate demand for a good will increase, if a good's price is expected to rise in the future.

• Immediate demand for a good is not related to future price expectations

• If a good is expected to be plentiful, demand will not be affected

• If the price is expected to stay the same, immediate demand for the good will decrease

When the price of something increases, the quantity demanded _____.

• increases

• reverses

• remains the same

• decreases

As opposed to movement along the demand curve, a change (shift) in the entire demand curve is a result of ____.

• a decrease in price

• a change in price and availability

• a change in something other than price

• an increase in price

Which of the following situations would cause a shift in the demand curve?

• a change in consumers' income

• suppliers' expectations of a price increase

• a change in government tax structure

• a change in technology

According to the graph, which line illustrates an increase in demand?

• A

• B

• C