Economics Unit 2 Review

The ______ states that as the price of a good rises, the quantity consumers are willing to purchase decreases.

• Law of Demand

• Law of Supply

• Law of Diminishing Marginal Utility

• Law of Increasing Opportunity Costs

The ______ states that as the price of a good rises, the quantity producers are willing to produce increases.

• Law of Demand

• Law of Supply

• Law of Diminishing Marginal Utility

• Law of Increasing Opportunity Costs

True or False: A change in the price of a product causes a shift in the demand curve.

• True

• False

Do the circled points represent a price floor or a price ceiling?

• Price Floor

• Price Ceiling

Do the circled points represent a price floor or a price ceiling?

• Price Floor

• Price Ceiling

Do the circled points represent a surplus or shortage?

• Surplus

• Shortage

Do the circled points represent a surplus or shortage?

• Surplus

• Shortage

A market in which a few sellers offer similar products

• Pure Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

A business owned by one person

• Sole Proprietorship

• Partnership

• Corporation

This market structure has the strongest price controls

• Pure Competition

• Monopolistic Competition

• Oligopoly

• Monopoly