Eco Unit 2 Test

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

The willingness and ability of a producer to make a product is referred to as

• quantity supplied

• quantity demanded

• supply

• demand

A decrease in the price of a good will

• increase supply.
• decrease supply.
• increase quantity supplied.
• decrease quantity supplied.

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

When the supply of a product or service goes up and the demand stays the same the Price will typically do what? 

• rise
• fall
• stay the same
• Consumer

When the demand for a product or service is higher than the supply this causes what?

• shortage
• consumer
• surplus
• equilibrium

When there is a shortage the price will usually? 

• rise
• fall
• remain the same
• equilibrium

New technology advances the rate at which furniture can be assembled. Why does this change the supply?

• Change in cost of production
• Changes in number of producers
• Changes in expectations

Cost of Steel decreases and effects autos

• increase in supply

• increase in quantity supplied

• decrease in supply

• decrease in quantity supplied

Auto workers strike

• increase in supply

• increase in quantity supplied

• decrease in supply

• decrease in quantity supplied