Practice Quiz: Econ Chap 4 and 5

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

The desire or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

The Law of Supply says that as the price of a good increases then...

• more of that good will be produced

• less of that good will be produced

• more of that good will be demanded

• less of that good will be demanded

Definition of Marginal Utility

• the satisfaction from consumption

• to total satisfaction from consuming a product

• the extra satisfaction from the last unit consumed

• the extra consumption from last unit consumed

The definition of the law of diminishing marginal utility

• As more units are consumed the marginal utility falls.

• As more units are consumed the marginal utility increases.

• As price decreases quantity demanded increases.

• As price increases consumers are willing to pay more.

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

What does this graph show?

• Shortage
• Surplus
• Supply Table
• Equilibrium

What is the Equilibrium Price?

• 1
• 2
• 3
• 4