Unit 2 - Supply and Demand Test Review

When there is an increase in demand, which direction does the demand curve shift?

• Right

• Left

Which direction does a demand curve go?

• Down and to the left

• Down and to the right

• Up and to the left

• Up and to the right

Which direction does a supply curve go?

• Down and to the left

• Down and to the right

• Up and to the left

• Up and to the right

Which is the equilibrium price?

• $1.00

• $1.50

• $2.50

• $3.00

When the selling price of a good goes up, what is the relationship to the quantity supplied?

• The quantity supplied of the good will decrease.

• The quantity supplied of the good will increase.

• There is no relationship.

Which price would lead to a shortage?

• $.50

• $1.50

• $2.50

How is price related to demand?

• If prices rise, demand will rise.

• If prices rise, demand will drop.

• There is no relationship.

What is this an example of?

• Supply Schedule

• Demand Schedule

• Supply Curve

• Demand Curve

According to the graphs, a price of $1.50 would be

• the equilibrium price.

• a price floor.

• a price ceiling.

• a subsidy.

What is this an example of?

• Supply Schedule

• Demand Schedule

• Supply Curve

• Demand Curve