Guinn Unit 2 Econ Review RV

An increase in demand causes the demand curve to shift

• to the left

• to the right

• does not shift

• downward

Which of the following is NOT a cause of a change in supply

• Price change

• Government regulations

• Producer expectations

• Technology

• Number of sellers

Which of the following is NOT a cause of a change in supply?

• Taxes

• Input costs

• Productivity

• Subsidies

• Change in company's Board of Directors

When amount demanded is greater than the amount supplied creates a

• surplus

• shortage

• price cut

• decrease in tax revenue

What is the difference between "change in demand" and "change in quantity demanded"?

• Change in demand is only caused by labor shortage

• Change in Quantity demanded is only caused by price change

• Change in quantity demanded is only caused by government regulations

• Change in demand is only caused by tax increases

Pick the causes for a change in demand

• Preference of consumers

• Income of consumer

• Number of buyers

• Expectations of consumers

• Related goods

Law of demand states

• Consumers buy less when price goes down and vice-versa

• Consumers buy more when price goes down and vice-versa

What occurs when price is too high?

• Shortages

• Surpluses

• Black Friday sales

• Equilibrium

Law of Supply states

• Suppliers offer more at a higher price and vice-versa

• Suppliers offer less at a higher price and vice-versa

Increase in supply causes the supply curve to shift to the

• right

• left

• downward

• upward