Econ Alive! Unit 2 Chapters 5-7

The law of demand says as...

• ...price increases quantity decreases

• ...quantity increases price decreases

• ...price changes elasticity does not react

• ...price increases quantity increases

Quantity demanded moves along the demand curve...

• in response to changes in price

• as PI3CS shifts

• as elasticity reacts

• as supply changes

When price increases a lot and consumers do not significantly change their buying habits of that product, that product has what?

• Elastic Demand

• Complementary Effect

• Sensitive Demand

• Inelastic Demand

When a goods substitute changes in price (Kraft Mac n Cheese prices decrease), what happens?

• Demand for Meijer Mac & Cheese increases

• Demand for Meijer Mac & Cheese decreases

• Supply for Meijer Mac & Cheese increases

• Supply for Meijer mac & Cheese decreases

If Governor Whitmer put a subsidy on oats and wheat for cereal what would happen to the cereal market?

• Demand for cereal increases

• Demand for cereal decreases

• Supply for cereal increases

• Supply for cereal decreases

What would happen if Meijer began producing computers?

• Demand for computers increases

• Demand for computers decreases

• Supply for computers increases

• Supply for computers decreases

What would happen to Michigan's cherry market if it was hit with a late frost in May?

• Demand for cherries increases

• Demand for cherries decreases

• Supply for cherries increass

• Supply for cherries decreases

What would happen to the apple market if the price of caramel dip decreases?

• Demand for apples increases

• Demand for apples decreases

• Supply for apples increases

• Supply for apples decrease

When Supply decreases it shifts...

• Left

• Right

When supply decreases it shifts equilibrium...

• Raising equilibrium price

• Lowering equilibrium price

• To the right

• Raising equilibrium quantity