Supply and Demand Practice

The law of supply states that when the price increases, the quantity supplied

• decreases

• increases

• stays the same

• reverses

The law of demand states that when the price decreases, the quantity demanded

• decreases

• increases

• stays the same

• reverses

What is the only thing that causes a change in quantity demanded?

• A change in technology

• A change in preferences

• A change in price

• A change in income

When price changes there is a _____________ the curve.

• shift of

• slide on

When something other than price changes there is a ______________the curve

• shift of

• slide on

How will an increase in the price of donuts affect the quantity demanded of donuts?

• Quantity demanded will increase, and there will be a slide down the demand curve.

• Quantity demanded will decrease, and there will be a slide up the demand curve.

• Quantity demanded will increase, and there will be a shift of the demand curve.

• Quantity demanded will decrease, and there will be a shift of the demand curve.

If the price of bracelets decreases, how will the quantity supplied be affected?

• The quantity supplied will increase, and there will be a slide down the supply curve.

• The quantity supplied will decrease, and there will be a shift of the supply curve.

• The quantity supplied will increase, and there will be a shift of the supply curve.

• The quantity supplied will decrease, and there will be a slide down the supply curve.

If a good becomes more popular, (a)   will increase and shift right.

If the cost of a resource used to make a good increases, (a)   will decrease and shift left.

What are substitutes?

• Goods that are bought together

• Goods that can be used in place of one another

• Goods that are in higher demand when incomes rise

• Goods that are in higher demand when incomes fall