Introduction Economics and Personal Finance - Unit 1 Review

In general, if the price of a good or service goes down, what happens to the demand for that good or service?

• demand goes up
• demand stays the same
• demand goes down
• none of the above

In general, if the price of a good or service goes up, what happens to the demand for that good or service?

• demand goes up
• demand stays the same
• demand goes down
• none of the above

An individual or group who purchases goods.

• producer
• consumer
• manufacturer

• employee

The amount of goods or services available is called?

• supply
• demand
• equilibrium

• inflation

The price of beef rises. What will happen to the demand for fish?

• 
• 
• No shift in demand curve. It is a price effect.

There is an expectation that a hard freeze will destroy the future crop of oranges. What will happen to the demand for orange juice right now?

• 
• 
• No shift in demand curve. It is a price effect.

The Apple headquarters is expanding, bringing more tech employees to the area. What will happen to the demand for restaurants and grocery store areas?

• 
• 
• No shift in demand curve. It is a price effect.

It becomes very fashionable to live in condos in the downtown areas of cities. What will happen to the demand for houses?

• 
• 
• No shift in demand curve. It is a price effect.

There is a severe recession and people lose their jobs. What will happen to the demand for houses?

• 
• 
• No shift in demand curve. It is a price effect.

The price of an airline ticket goes up. What will happen to the demand for train tickets?

• 
• 
• No shift in demand curve. It is a price effect.