Module 2 Review (Economics)

When entering into a market, what is the main motivation for suppliers?

• Ethical dilemmas

• Creation of natural resources

• Happiness of the people

• Profit

This graph demonstrates a(n)

• Increase in Demand

• Increase in Supply

• Decrease in Demand

• Decrease in Supply

​This graphs shows a(n)

• Increase in Demand

• Increase in Supply

• Decrease in Demand

• Decrease in Supply

Motorcycles become incredibly popular as a means for transportation. What happens to the market for motorcycle helmets?

• Increase in Demand

• Increase in Supply

• Decrease in Demand

• Decrease in Supply

What type of relationship do price and quantity supplied have?

• Inverse

• Direct

• Complex

• Simple

Equilibrium is the point at which supply and demand are

• Opposite

• Best for demand

• A product of supply

• Equal

The Law of Supply states that

• As price goes up, quantity supplied goes down

• As price goes down, quantity supplied goes up

• As price goes up, quantity supplied stays the same

• As price goes up, quantity supplied goes up

In October, it is anticipated that there will be many people who want to purchase costumes. What happens to the market for costumes?

• Increase in Demand

• Increase in Supply

• Decrease in Demand

• Decrease in Supply

New technologies make it more efficient to run dairy farms. What happens to the market for milk?

• Increase in Demand

• Decrease in Demand

• Increase in Supply

• Decrease in Supply

A price ceiling is

• The lowest amount that can be charged for a good by law.

• The highest amount that can be charged for a good by law

• The quickest sell that a supplier can make

• The highest bidding price when a product is placed online