Micro Unit 2 Review

Demand is the consumers...

• willingness to buy something

• ability to buy something

• willingness and ability to buy something

• something I need really badly

Why is the Demand curve always downward sloping?

• Inverse relationship between price and quantity

• Law of diminishing marginal utility

• Direct relationship between price and quantity

• Income Effect

• Substitution Effect

Which of the following are the shifters of Demand?

• Taste and Preference

• Number of Consumers

• Income

• Price of Related Goods

• Future Expectations

Which of the following will NOT shift the Demand curve?

• Taste and Preferences

• Number of Consumers

• Price

• Price of Related Goods

Which of the following would cause the increase in Demand?

• Decrease in number of consumers

• Price of strawberries go down

• Bathing in chocolate makes you live longer

• BOGO chocolate bars will happen next week

Supply is the producers...

• willingness to sell something

• ability to sell something

• willingness and ability to sell something

• something a producer should really sell

Why is the supply curve always upward sloping?

• Inverse relationship between price and quantity

• Income effect

• Direct relationship between price and quantity

• Substitution effect

Which of the following are shifters of the Supply curve?

• Price of input/resource costs

• Number of Sellers

• Government Action

• Future Expectations

• Technology

What would have caused the increase in supply?

• Decrease in sellers

• Increase in resource costs

• Decrease in resource costs

• A hurricane

The point where the Demand and Supply curve is known as...

• disequilibrium

• equilibrium

• equal point

• equity