supply and demand review

The price of Pepsi skyrocketed to $20 a bottle so the quantity demanded for Coca Cola increases because they are

• Substitute goods

• Inverse goods

• Complimentary goods

• Supplied goods

Demand is best defined as the measure of how much consumers are able and willing to buy

• At one price in a given period of time

• At different possible prices in a given period of time

• Above the equilibrium price at a given time

• According to their income and budget over time

Demand for a product tends to be price-inelastic when the product has

• Few if any substitutes

• More consumers than producers

•  Fixed prices instead of flexible prices

• No complimentary goods

The inverse relationship between the price of a product and the quantity that consumers will buy is known as

• The principle of pricing

• The law of demand

•  Efficiency

• Diminishing marginal returns

 If consumers readily switch to substitutes when the price of butter increases by only a small amount, the demand for butter is said to be

•  Static

•  Elastic

• Inelastic

• market based

Demand for insulin tends to be price-inelastic because the drug is considered

        

    

• A complimentary good

• A useful item

• A necessity

• A substitute

Which of the following is likely to increase the demand for peanut butter?

        

• An increase in the cost of bread

• News that insects have destroyed much of the peanut crop

• A big increase in the price of jelly

• Fewer children in the population

The demand curve shows an inverse, or negative, relationship between

       

• Short term and long term prices

• Price and quantity supplied

• Elastic vs. inelastic goods

• Price and quantity demanded

 If the profit opportunity for a given product increases, the most likely result would be

       

• An increase in the cost of product

• An increase in the number of consumers

• No change

• An increase in the number of producers

 In economics, the term supply refers to

        

        

• The quantity of a good or service a producer must sell to earn a profit

• The quantity of an item offered for sale at a particular price

• The quantity of an item offered for sale at a particular price

• The quantities of a good or service a producer is willing and able to sell at a range of prices