Unit 2 Demand and Supply CFU

Which of the following pairs is an example of substitutes?

• Cereal and Milk

• calculators and iPods

• Gatorade and Powerade

• water skiing and skateboarding

When the price of something increases, the quantity demanded ___?

• decreases

• reverses

• increases

• remains the same

Which of the following would cause the demand curve to

shift to the left?

• the average annual income increases

• government corporate taxes increase

• consumers begin to like the product

• price of a complementary good increases

What would not cause a change (shift) in the demand curve?

• a decrease in the salary’s of the population

• a change in popularity of the good

• a change in price of the good

• an increase in the price of a substitute good

How can expectations about a future price change consumer behavior?

• If the price is expected to stay the same, immediate demand will decrease.

• Immediate demand for a good is not related to future price expectations.

• If a good is expected to be plentiful, demand will not be affected.

• Immediate demand will increase, if a good’s price is expected to rise in the future.

If price of tea decreases, what is the affect on the demand for coffee?

• the demand for tea is not affected

• the demand for coffee decreases

• the demand for tea decreases

• the demand for coffee increases

Which of the following would cause the demand curve to

shift to the left?

• price of a substitution good decreases

• huge population increase

• new government regulations

• consumers begin to like the product

Which of the following would cause the demand curve to

shift to the right?

• a popular toys loses appeal

• suppliers expect higher prices in the future

• price of a substitute good decreases

• huge population increase

An increase in quantity Demanded is located by moving from point ________ to point_________

• Moving from A to B

• Moving from A to C

• Moving from C to A

• Moving from B to A

Which of these demonstrates inelastic demand?

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