Demand & Supply

The Law of Demand states the price and quantity demanded are ______ related.

When the price of gasoline increases, Jerome starts to carpool is order to use less gasoline. This is a good example of the:

• Substitution Effect

• Reflection Effect

• Surplus Effect

• Income Effect

Which ones of these are examples of inferior goods? Check all the ones that apply.

• Fast Food

• Electricity

• Cruise on a Ship

• Public Transportation

• Milk

Which of the following products is likely to have the strongest income effect?

• Higher Education

• Cereal

• A Gold Bracelet

• French Fries

If the price is above the equilibrium price, there is going to be a _______________ in the market.

A computer and a printer are an example of two ...

• Inferior Goods

• Complements

• Inputs

• Substitutes

Which of the following will shift the supply curve for a good? Check all the ones that apply.

• An increase in income

• The number of consumers

• The price of inputs

• Production technology

• The price of the good

What will likely happen to the equilibrium price and quantity of houses if income increases?

• The price and quantity will both increase

• The price and quantity will both decrease

• The price will increase, but quantity will decrease

• The price will decrease, but quantity will increase

What will likely happen to the equilibrium price and quantity of bread if the price of wheat increased.

• The price and quantity will both increase

• The price and quantity will both decrease

• The price will increase, but quantity will decrease

• The price will decrease, but quantity will increase

What will happen to the quantity and price of a good if its demand decreased but supply increased?

• The price will rise, but quantity can increase, decrease, or remain the same

• The price will fall, but quantity can increase, decrease, or remain the same

• The quantity will increase, but price can increase, decrease, or remain the same

• The quantity will decrease, but price can increase, decrease, or remain the same