Supply & Demand Test Review

Which of the following describes the amount of a good producers are able and willing to sell at various prices during a certain period?

• Price
• Cost
• Supply
• Demand

How is profit calculated?

• Total costs minus total revenue
• Total revenue minus total costs
• Total supply plus total demand
• Total demand plus total supply

Which of the following is true about the supply curve?

• As the supply quantity rises, so does the price
• As the price rises, so does the supply quantity
• As the price rises, so does the demand
• As the cost rises, so does the demand

Increasing product supply leads to which of the following situations?

• An inward shift of the demand curve
• An outward shift of the demand curve
• An inward shift of the supply curve
• An outward shift of the supply curve

Which of the following terms describes the cost of producing an additional unit of a good?

• Marginal cost
• Marginal utility
• Supply cost
• Supply utility

Which of the following is the amount of a product a consumer is willing an able to purchase at given prices?

• Price
• Cost
• Supply
• Demand

Which of the following relies the most on the health of the economy?

• Builders
• Manufacturers
• Trade industries
• Producers

Which of the following is true about the demand curve?

• As the price rises, the good’s demand increases
• As the price rises, the good’s demand decreases
• As the cost rises, the good’s demand increases
• As the supply quantity rises, the good’s demand decreases

Toothbrushes and toothpaste are examples of which of the following?

• Complementary goods
• Substitute goods
• Shift goods
• Raw goods

Which of the following measures the responsiveness of consumers to changes in price?

• Utility of demand
• Utility of supply
• Elasticity of demand
• Elasticity of supply