Econ U2 practice

The law of demand is

• There is an inverse relationship between price and quantity

• There is a direct relationship between price and quantity

• There is no relationship between price and quantity

When there is a stable demand curve, the only thing that will cause a change in quantity demanded is

• A change in consumer taste or preferences

• A change in number of buyers

• A change in the price of a product

• A change in consumer income

An increase in the price of Pepsi will result in:

• Movement upwards along the curve for Pepsi

• Movement downwards along the curve for Pepsi

• Movement upwards along the curve for 7-Up

• Shift downwards and to the left in demand for Pepsi

Shifts in the demand curve are a result of

• P.I.N.E.R.

• S.C.E.N.T.

• Price.

Shifts in the supply curve are the result of...

• P.I.N.E.R.

• S.C.E.N.T.

• Price

Movements in the demand curve are a result in a change in....

• P.I.N.E.R.

• S.C.E.N.T.

• Price

Movements in the supply curve are a result of...

• P.I.N.E.R.

• S.C.E.N.T.

• Price

If demand increases

• There will be a shift to the left

• There will be a shift to the right

• There will be movement down the curve

• There will be movement up the curve

If demand Decreases

• There will be movement up the curve

• There will be movement down the curve

• There will be a shift left

• There will be a shift right

An increase in Quantity demanded results in

• A movement on the demand curve.

• A shift to the left of the demand curve.

• A shift to the right of the demand curve.