Unit 2: Demand and Supply

The diagram represents a

• increase in demand
• decrease in demand

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

What factor could have caused the demand to decrease?

• incomes increased
• expectation that prices will increase 
• a decrease in the price of a substitute 
• increase in market size

To access Internet services, consumers must use a computer. If computer prices fall, what is the effect on the demand for Internet services

• the demand for Internet services increases
• the demand for Internet services decreases
• The demand for Internet services remains unchanged
• The demand for Internet services could increase, decrease, or stay the same depending on other factors 

Which graph below shows the SUPPLY CURVE?

• A
• B
• C
• D

The diagram represents a(n)

• increase in supply
• decrease in supply
• change in quantity supplied
• none of the above

What might cause the supply curve to shift left?

• price of a complementary good decreases

• large number of producers enter the market

• computer processing improves production

• a new law is passed requiring all new motorcycles to have back-up cameras

An increase in supply is indicated by which graph?

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A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

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The prices for houses steadily increase, causing more people to want to sell their homes. Which of these demonstrates this concept?

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