Unit 2 Review: Supply and Demand

When the demand curve shifts to the left, this suggests demand has

• increased

• decreased

• Quantity demanded has increased

• Quantity demanded has decreased

When the demand curve has shifted to the right, this suggests demand has

• increased

• decreased

• quantity demanded has increased

• quantity demanded has increased

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

• Supply would increase

• Supply would Decrease

• Supply would stay the same

• India is not a real country

If a wave of Peruvian immigrants migrated to south Florida, how might this affect the demand for Peruvian goods in the region?

• Demand would increase

• Demand would decrease

• Demand would be unchanged

• Quantity Demanded would increase

When the price of Nike brand shoes increases, we will probably go purchase a brand like Adidas or Pumas instead. Which of the following best explains this behavior?

• Substitution Effect

• Income Effect

• Complement Goods

• Consumer expectations

As prices rise, sellers will offer more goods and services for sale.

• Supply
• Law of Supply
• Change in supply
• demand

The Supply Curve is upward-sloping because

• As the price increases, so do costs
• As price increases, suppliers can earn higher profits or justify higher marginal costs to produce more.
• As the price increases, consumers demand less.
• None of the above

A shortage of a good is often a signal for a producer to

• lower the production of that good
• lower the prices of thay good
• raise the prices of that good
• shift production to another good

Which of the following will not cause the demand for product K to change?

• 
  A change in the price of close-substitute product J
  
• 
  An increase in consumer incomes
  
• 
  A change in the price of K
  
• A change in consumer tastes
  

The Law of Demand

• the desire to own something
• when a good's price is lower, consumers will buy more of it. When a good's price is higher, consumers will less more of it

• describes how much of a good is offerned for sale at a specific price.
• the higher the price, th elarger the quantity produced