Economics Unit Test REVIEW

Markets have two agents:

• Producers and Consumers

• Sole Proprietorship and Partnerships

• Buyers and Sellers

A market for a good requires demand and supply.

• True

• False

Demand represents the buyers in the market.

• True

• False

All other factors being equal, there is an inverse relationship between a good's price and the quantity consumer demand. This is the definition for:

• Quantity Demanded

• Determinants of Demand

• Demand

• Law of Demand

The specific amount that buyers are willing to purchase at a given price; each point on a demand curve. This is a definition for:

• Quantity Demanded

• Determinants of Demand

• Demand

• Law of Demand

All of the quantities of a good or service that buyers would be willing and able to buy at all possible prices. This is a definition for:

• Quantity Demanded

• Determinants of Demand

• Demand

• Law of Demand

Changes in conditions that cause the demand curve to shift. This is the definition for:

• Quantity Demanded

• Determinants of Demand

• Demand

• Law of Demand

A change in demand and a change in quantity demanded are not the same thing.

• True

• False

Price is not a determinant of demand, thus a change in price does not cause demand to increase or decrease or shift.

• True

• False

A change in the price of a good will cause the quantity demanded for that good to change, but a change in the demand for related goods (complements and substitutes) causes the demand curve to shift.

• True

• False