Unit 1 Test

Demand means

• the amount of a good or service that consumers are willing to buy.

• is the amount of a good or service produced.

• is the price that is demanded by consumers.

• None of the above.

What does the law of demand say

• consumers will buy less of something when price goes down.

• consumers will buy more of something when price increases.

• consumers will buy more of something when prices go down.

• None of the above.

If the price of a good or service decreases what will happen to the demand for it? (a)  

• increase
• decrease
• stay the same
• who knows

If the price of a good or service increases what will happen to the demand for it? (a)  

• increase
• decrease
• stay the same
• who knows

What does this curve represent? (a)  

• supply
• equilibrium
• demand
• surplus

If the price of printers goes down, what happens in the market for ink cartridges? (a)  

• Supply increases.
• Supply decreases.
• Demand increases.
• Demand decreases

Price goes on ________

• the vertical axis
• the horizontal axis
• at the origin
• the z axis

Why is the Law of Demand called a Law?

• Because its common sense

• Because it has been DEMONSTRATED to be true

• Because Mr. Roxburgh said so

• Because its in the Textbook

Select the Axis where Price Falls on.

Answer explanation

Price is shown on the Y Axis.

If the Price of a burger is $10 dollars but then changes to $8.50 what will happen to the QUANTITY Demanded? (a)  

• It will decrease
• It will stay the same
• It will increase
• Nothing