Econ Unit 2A Quiz

According to the law of Supply...

• When demand goes up supply goes down

• Price and Quantity Supplied move in the

  same direction.

• As price goes up Quantity supplied increases.

• When supply goes up demand goes down.

Which of the following would cause the following graph?

• A successful advertising campaign

• A new law limiting age groups who can

  buy the product.

• A federal increase in min wage

• A decrease in the price of the good.

This graph best represents which economic concept?

• Decrease in supply

• Decrease in Quantity Supplied

• Decrease in Quantity Demanded

• Decrease in Demand

What is one possible reason why there was movement from point A

to B on the graph?

• There was an increase in the price of the

  good or service

• There was an decrease in the price of the

  good.

• There was an decrease in the price of the

  good.

• A change in income

Line B represents...

• elastic supply

• elastic demand

• inelastic supply

• inelastic demand

6. The only two ways to get a higher market equilibrium price is with an _______________.

• Increase in demand or decrease in supply

• Decrease in demand or decrease in supply

• Increase in supply or decrease in demand

• Increase in supply or increase in demand

If there is an increase in supply of a product, the market equilibrium price for that product

would...

• decrease

• Not be impacted

• increase

A very successful advertising campaign could potentially have what immediate impact on

the market price of the good?

• increase

• decrease

The concept that you will eventually buy less of a product even if the price continues to drop

because you will lose satisfaction is known as _____________________.

• The law of Demand

• the substitute effect.

• the law of diminishing marginal utility

• The law of Market Equilibrium

Which condition would result in a more elastic supply curve?

• A product or service that is heavily

  regulated by the government.

• A product that requires lots of capital

  investment.

• A short production time frame with little

  capital investment needed.