Economics SLO

What is an example of a non-price determinant on quantity demanded of a

product?

• Saudi Arabia decides to not set the price of oil.

• Many companies enter the market to supply a new product.

• The profit margin of an item goes down due to stiff competition.

• A particular type of shirt suddenly becomes wildly popular due to a

  celebritywearing it.

If the demand for a product is inelastic what would you predict would

happen to its demand when its prices rises?

• The demand would inversely reflect the price

• The demand change would be smaller relative to price

• The price change would be smaller relative to demand change

• The demand change would be much greater relative to price change

When the price of something increases, the quantity demanded -

• increases.

• remains unchanged.

• decreases.

• reverses.

When a store reduces the price of computers, the store reports that the demand for software increases. What factor best describes the reason for the increase in the demand for software?

• Computers and software are complements

• Computers and software are competitors.

• Computers and software are substitutes.

• Computers and software are not related.

The _____ _____ is the price at which the number of a particular product that

is supplied equals the number of that product that is demanded.

• fixed cost

• variable cost

• equilibrium price

• price floor

According to the Law of Supply, which of these would happen to an item as its price rose?

• Producers would make less of it.

• Producers would make more of it.

• Producers would increase the price even more.

• Producers would lower the price on similar items.

What effect would an unexpectedly productive corn harvest most likely have on the price of corn?

• increase

• decrease

• equilibrium

• no effect

Changes in quantity demanded and changes in prices have a _______ relationship.

• indirect

• positive

• inverse/opposite

• neutral

Why is a demand curve downward sloping?

• because quantity demanded increases as prices decreases

• because of the natural elasticity of the market

• because it shows how increasing incentives changes demand

• because it reflects the desire, ability, and willingness of consumers

Which of the following statements is true?

• As price decreases, more people are likely to buy it.

• As price increases, more people will demand the product.

• The more money something costs, the less the producer will likely produce.

• A supply curve will always slope down from left to right.