Economics Unit 2 Test

If you were to graph this demand schedule, the demand curve would

• slope upward from left to right.

• slope downward from left to right.

• be horizontal.

• be vertical.

Which of the following choices could cause the movement shown in this graph?

• a decrease in income

• an increase in population

• an increase in the price of a substitute

• a decrease in the price of a complement

Based on this graph, how many Beanie Babies were demanded at a price of $6 before they became a fad?

• 100

• 200

• 300

• 400

The movement in the graph shows that the quantity demanded of butter decreased because the

• price of butter increased.

• price of margarine decreased.

• price of margarine increased.

• price of butter decreased.

Which of the following choices could cause the movement shown in this graph?

• an increase in the price of Blu-ray discs

• a decrease in the price of Blu-ray discs

• an increase in the price of Blu-ray players

• a decrease in the price of Blu-ray players

On Curve A in the graph, suppose the price dropped from $10 to $7. Would quantity demanded increase or decrease and by how much? 

• Quantity demanded would decrease by 1 unit.

• Quantity demanded would increase by 1 unit.

• Quantity demanded would decrease by 5 units.

• Quantity demanded would increase by 5 units.

Find the price of $15 on the demand schedule. What point does this price and quantity correspond to in the graph?

• V

• W

• X

• Y

What does the movement from b' to b on the graph represent?

• an increase in demand

• an increase in quantity demanded

• a decrease in demand

• a decrease in quantity demanded

Study the illustration. At a price of $25, how much more of the product is demanded on curve D'D' than on curve DD? 

• 2 units

• 3 units

• 1 unit

• 4 units

According to this demand curve, how many T-shirts will be demanded at a price of $10?

• 400

• 600

• 800

• 1000