Unit 3

If the supply of a good decreases, the price of that good will _____ and the quantity will _____.

• decrease, increase

• increase, decrease

• not change, increase

• increase, increase

If the cost of production of Hula Hoops increases, the supply curve will 

• shift to the right

• shift to the left

• Move up on the curve

• Move down on the curve

Illustrating the law of supply, a supply curve typically is 

• sloping down

• sloping up

• sloping vertical

• sloping horizontal

An increase in the number of sellers in a market will cause 

• a shift of the supply curve to the left

• a movement up along an existing supply curve

• a shift of the supply curve to the right

• a movement down along an existing supply curve

When input costs increase

• the supply curve shifts to the right

• there is a movement up along an existing supply curve

• the supply curve shifts to the left

• there is a movement down along an existing supply curve

A demand curve shows the relationship between quantity demanded and 

• price

• income

• supply

• production

Economic demand is

• the amount of a good or service that consumers are willing and able to buy at various prices.

• he amount of a good or service that consumers are willing and able to buy at one price.

• the amount of a good or service that consumers are willing but not able to buy at various prices.

• the amount of a good or service that producers are willing and able to produce at various prices.

The law of demand states that as the price of a product increases quantity demanded increases.

• True

• False

In the product market. consumers demand 

• resources

• money

• capital

• goods and services

Conditions for demand are consumers' 

• ability but not willingness to buy

• willingness but not ability to buy

• willingness and ability to buy