Unit 3 Quiz: Supply & Demand

The law of demand states: When prices are ___________________ consumers will buy more and when prices are __________________ consumers will buy less

• Lower/lower

• Higher/higher

• lower/higher

• higher/lower

The Demand curve will always be....

• negatively sloped

• positively sloped

• linear

• flat

If there is an increase in demand, the curve will shift

• Up

• Down

• left

• right

Demand is affected by non-price shifters. For example, your own personal demand for one type of music and not the other is primarily affected by

• Income

• Complimentary goods

• Taste and preference

• Demographics

Regarding non-price shifters, if I were to take into consideration where to sell denture cleaner... I might want to consider this demand shifter

• Seasonality

• Expectations

• Income

• Demographics

In order for supply to exist, producers must have both the ability and the _____________ to make goods available for sale

• willingness

• capital

• gainz

• investments

A supply curve will always be

• negatively sloped

• positively sloped

• linear

• flat

A decrease in supply results in a curve shift ...

• up

• down

• left

• right

Regarding non-price shifters... If I were to replace a machine that turned out 20 pieces of wood with a more efficient one that turned out 40 pieces... this would be what kind of shifter?

• technology

• location

• replacements

• government subsides

A change in quantity demanded results in

• a curve shift to the right

• a slide along the curve

• a curve shift to the left

• reassessment of the demand schedule