Final Review

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs
• Supply fewer CDs
• Quantity supplied will not change

Which of the following will cause an increase in demand for snowboards?

• More costly production methods 
• A decrease in the price of lift tickets at resorts in Colorado 
• A decrease in consumer income   
• A decrease in the population 

The price elasticity of demand measures how much

• quantity demanded responds to a change in price.
• quantity demanded responds to a change in income.
• price responds to a change in demand.
• demand responds to a change in supply.

If the price of fresh tomatoes goes up 1% and buyers buy 4% less. What is the demand for fresh tomatoes?

• Elastic

• Inelastic

• Unit elastic

If the price of coffee goes up 1% and buyers buy 0.25% less. What is the demand for coffee?

• Elastic

• Inelastic

• Unit elastic

If the supply increases by more than 1%, we say the supply is ....

• Elastic

• Inelastic

There are very high barriers these two structures

• monopoly

• monopolistic competition

• oligopoly

• pure / perfect competition

There are many buyers AND sellers in this market structure.

• monopoly

• monopolistic competition

• oligopoly

• pure/perfect competition

Their is only one supplier in this market structure.

• monopoly

• monopolistic competition

• oligopoly

• pure / perfect competition