Supply & Demand exam practice

What is demand?

• The products and services consumers are likely to purchase.

• The products a costumer would like to buy.

• A service a customer would like to purchase.

• A system of taxpaying.

In terms of Demand, what happens when the price of the products or services increases?

• The demand increases.

• The quantity demanded decreases.

• The quantity demaded increases.

• The demand decreases.

For the law of demand, as price rises, what happens to quantity demanded?

• It goes up

• It goes down

• It stays the same

• No change

Which of the following will cause an increase in the quantity demanded of snowboards?

• More costly production methods

• A decrease in the price of lift tickets at snowboarding resorts

• A decrease in consumer income

• A decrease in the population

The movement from Point A to Point B represents a(n)

• increase in the price

• decrease in the quantity supplied

• shift in the supply curve

• Both Orange and Blue are correct

The general term for things that sellers or producers are willing and able to sell (in economic terms) is referred to as _______?

• Demand

• Supply

• Equilibrium

• Opportunity Cost

The general term for things that buyers are willing and want to buy (in economic terms) is represented as _____?

• Demand

• Supply

• Equilibrium

• Opportunity Cost

The Law of Demand states:

• When prices are HIGH, demand will be HIGH

• Demand is the same as supply

• When prices are HIGH, demand will be LOW

• Price and Demand have no relationship

If there is significantly more supply than there is available demand, there will be a ______?

• Surplus

• Shortage

• Supply Shock

• Demand Curve

If there is significantly more demand than there is available supply, there will be a _______?

• Surplus

• Shortage

• Supply Shock

• Demand Curve