(23) Economics Final

The Law of Demand states that a/an ______________ relationship exists between price and quantity demanded.

• a. direct
• b. positive
• c. inverse
• d. simple

The demand curve is ______________ sloping, illustrating the inverse relationship between price and quantity demanded.

• a. upward
• b. positive
• c. undefined
• d. downward

An increase in the price of a product would cause the following change:

• a. an increase in the demand for a product.
• b. an increase in the quantity demanded for a product.
• c. a decrease in the demand of a product.
• d. a decrease in the quantity demanded for a product.

A decrease in the quantity demanded can be shown by

• a. a rightward shift of the demand curve
• b. a leftward shift of the demand curve
• c. movement up, along the demand curve
• d. movement down, along the demand curve

The increase in the price of milk results in a decrease in the demand for cereal. These two products are

• a. substitutes
• b. complements
• c. unrelated
• d. replacements

Which of the following choices would most likely cause the change shown in the graph?

• a. People prefer more of this product
• b. Taxes for consumers decrease
• c. The number of buyers in the market decrease
• d. Technology improves production

Which of the following choices would cause the change shown in the graph?

• a. An increase in the number of consumers
• b. The price of the product increased
• c. Inputs became more expensive
• d. People expected the price of a product to decrease next month

The decrease in the price of hotdogs results in a decrease in the demand for hamburgers. These two products are

• a. substitutes
• b. complements
• c. unrelated
• d. replacements

The Law of Supply states that a/an ______________ relationship exists between price and quantity supplied.

• a. direct
• b. inverse
• c. simple
• d. negative

The supply curve is ______________ sloping, illustrating the direct relationship between price and quantity supplied.

• a. downward
• b. upward
• c. negative
• d. undefined