Demand & Supply

The Law of Demand states the price and quantity demanded are (a)   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.

• Electricity

• Cruise on a Ship

• Public Transportation

• Milk

• Generic Brands

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 (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