Econ Unit 2 Review

There has been a decrease in the price of Coca Cola. How will the price change effect the demand for Dr Pepper?

• The demand for Dr Pepper will decrease

• The demand for Dr Pepper will increase

• The demand for Dr Pepper will not change

• The demand for Coca Cola will increase

The demand schedule for sodas shows that -

• as price increases the demand decreases

• as price increases the demand increases

• as price increase the supply decreases

• sodas are good

According to the graph, what is the equilibrium price?

• $1

• $2

• $3

• $4

A decrease in the quantity supplied of a product is caused by -

• a decrease in selling price

• an increase in selling price

• a decrease in the cost of production

• an increase in the cost of production

A shortage is demostrated by -

• supply > demand

• demand > supply

• demand = supply

• an increase in factors of production

A decrease in supply may be caused by -

• higher retail prices

• increased consumer income

• increased cost of production

• shift in consumer preference

A drop in price will

• increase the quantity demanded of goods

• decrease the quantity demanded of goods

• not affect the quantity demanded of goods

• change the law of demand

Which of the following goods are the most demand inelastic?

• PS4

• iPhone 8x

• Gasoline

• Starbucks Triple Venti, Half Sweet, Non-Fat, Caramel Macchiato, w/ Soy Milk

Advances in Technology usually...

• Lower costs and increase supply at all price levels

• increase cost and increase supply at lower price levels

• lower costs and increase supply at higher price levels

• increase cost and decrease supply at all price levels.

A market is in equilibrium when

• quantity demanded is greater than quantity supplied

• quantity supplied and quantity demanded are equal

• quantity supplied is greater than quantity demanded

• quantity supplied and quantity demanded are set by the government