Supply and Demand Test Review

The Law of Demand states that as price decreases

• Wages decrease

• Production Increases

• Demand increases

• Quality Decreases

Quantity Demanded moves along the Demand Curve in response to changes in

• Price

• Income

• Preferences

• Expectations

Supply depends on the willingness and ability of what?

• Donors to Contribute

• Producers to Produce

• Advertisers to Promote

• Consumers to Purchase

According to the Law of Supply, what happens as price increases?

• The Demand Decreases

• The Supply Curves becomes flat

• The Quantity Supplied Increase

• The Supply Curve shifts to the left

Which of these would most likely increase the supply of soccer balls?

• a Transportation Strike

• a Government Excise Tax

• a Decrease in the Price of Raw materials

• an Increase in the supply of Tennis Balls

What type of relationship is the Law of Demand?

• Toxic

• Inverse Relationship

• Positive Relationship

• Direct Relationship

The degree to which the quantity demanded responds to changes in price is called what?

• Elasticity

• Revenue

• Profit

• Utility of Margins

What does quantity supplied mean?

• How much demand influences the supply

• Number of Goods provided at all prices

• Number of Goods provided at a specific price

• When the supply starts to lessen

What does Ceteris Paribus mean?

• Equal things having being

• All other things being equal

• All things but one being equal

• All other things being equitable

What are the 2 key characteristics that are important to Demand?

• Willingness and Ability to Supply

• Willingness and Ability to Buy

• Price and Supply

• Quantity Demanded and Ability to Buy