2nd 9 Weeks Exam Unit 2 Test Micro-Economics

According to the law of demand an increased price for most products and services results in

• the supply of more products and services.

• the demand for fewer products and services.

• a reduction for the demand for substitutes.

• a decrease in competition among suppliers.

Which of the following choices could cause the movement shown in this graph?

• a decrease in income.

• an increase in population

• an increase in the price of a substitute

• a decrease in the price of a complement

According to the law of supply an increased price for most products and services results in

• an increase in the quantity of products and services offered.

• a decrease in the quantity products and services purchased.

• a reduction for the demand for substitutes.

• a decrease in competition among suppliers.

Equilibrium can be expressed as

• Qs > Qd.

• Qd > Qs.

• Qd = Qs.

• Qd < Qs.

What determines the price and the quantity produced of most goods?

• the consumer’s perception of necessity

• the interaction of supply and demand

• the availability of substitutes for the goods

• the quality of the goods that are produced

What is a basic principle of the law of demand?

• The higher the price, the more people will want the good.

• Everyone has a limited income that they will spend.

• When a good’s price is lower, people will buy more of it.

• Services are of interest in the same way that goods are.

How is the current demand for a good related to its future price?

• If the price is expected to drop, current demand will fall.

• If the price is expected to drop, current demand will rise.

• If the price is expected to rise, current demand will fall.

• Current demand is not related to future price.

Which of the following is an example of quantity demanded?

• At all prices from $1 to $3 a total of 5000 soft drinks would be offered for sale.

• At a price of $2.50 the store would offer 1000 soft drinks.

• At a price of $2.50 only three soft drinks would be bought.

• At all prices from $1 to $3 a total of 10 soft drinks would be bought.

Which of the following choices could cause the movement shown in this graph?

• inputs become more expensive

• the number of firms decreases

• technology improves production

• taxes increase

Based on the table, how many softballs will be sold at the market clearing price?

• 50

• 100

• 200

• 300