EPF Module 3 Review

Plotting the points from a demand schedule on a graph shows a...

• demand curve

• demand chart

The relationship between price and quantity demanded is typically

• inverse

• direct

Demand, illustrated by a demand curve, is the quantity of a good or service that consumers desire at various prices.

• True

• False

At a higher price the quantity supplied of a product typically is...

• higher

• lower

When moving up along an existing supply curve, all variables other than price are

• held constant

• increasing

• decreasing

• fluctuating

Improvements in technology cause supply to

• increase

• decrease

Which of the following are non-price determinants of supply ?

• technology, cost of inputs, and number of sellers

• taste and preference, cost of inputs, and number of sellers

• technology, income, and number of sellers

• technology, cost of inputs, and number of potential buyers

An increase in supply is illustrated by a supply curve shifting to the left.

• true

• false

When quantity supplied exceeds quantity demanded the market has a

• surplus

• shortage

A shortage exists in a market when the price is

• lower than the equilibrium price.

• higher than the equilibrium price.

• equal to the equilibrium price.

• higher than the equilibrium quantity