Unit 2: Supply & Demand Review

What is the Law of Supply?

• When demand goes up, supply decreases.

• Supply shifts to the right due to technology.

• When price increases, quantity supplied decreases.

• When price increases, quantity supplied increases.

When the price of a product increases, there is

• a shift in demand.

• movement along the demand curve.

• a change in elasticity of demand.

• no effect on quantity demanded.

products that are used in combination with another product

• Substitutes

• Complements

• Normals

• Inferriors

The amount (quantity) that is demanded by consumers at a specific price

• Quantity Demanded

• Quantity supplied

• Substitution

• Income

  Effects

A popular social media influencer says that umbrellas are a fashionable accessory. What happens to the market for umbrellas today?

• Increase in Supply

• Decrease in Supply

• Increase in Demand

• Decrease in Demand

a cost your business pays for that changes depending on how

much product you produce.

• fixed costs

• revenue

• variable cost

• profit

the cost of inputs, number of sellers, the market due to natural

disasters or international events, technology, producer expectations,

government policies or regulations

• Factors that Shift the

  Production Curve

• Factors that Shift the

  Demand Curve

• Factors that Shift the

  Supply Curve

• Factors that Shift the

  Consumer Curve

Minimum wage just went up by $2. What happens to the market for burgers today?

• Increase in Supply

• Decrease in Supply

• Increase in Demand

• Decrease in Demand

a cost your business must pay for every month regardless of how

much product you produce.

• fixed costs

• revenue

• variable cost

• profit

An effective price ceiling causes which of the following?

• Equilibrium

• Surplus

• Shortage

• Market Reform