Demand and Supply

How does an increase in consumer population affect the demand for most products?

• Demand Increases

• Demand Decreases

• Prices go up

• Prices go down

A shift to the left in the demand curve indicates _________________________.

• a decrease in price

• increase in population

• decrease in demand

• increase in demand

When a product becomes a fad, the demand curve for that product __________________.

• slopes upward

• shifts to the right

• becomes a straight line

• shifts to the left

Which of the following goods has inelastic demand?

• insulin

• diet coke

• a particular brand of coffee

• t-bone steak

If two products are complementary goods, how will a decrease in the price of one affect the other?

• demand will increase

• demand will decrease

• price will increase

• price will decrease

According to the law of supply, as the price rises for a good, _______________________.

• quantity supplied decreases

• quantity supplied increases

• consumers stop buying it

• manufacturers stop producing it

Prices on goods and services are determined _____________________________.

• only by demand

• both by demand and supply

• only by supply

• neither by supply nor demand

The use of technology to produce and distribute goods will _________________________.

• not effect supply

• decrease supply

• increase supply

• move the supply curve to the left

A decrease in the demand for a good together with an increase in supply would cause ______.

• shortage of the good

• increase in production

• surplus of the good

• equilibrium price

When a market economy operates without restriction, it ________________________.

• creates shortages

• raises prices

• creates surpluses

• eliminates shortages and surpluses