Supply & Demand Review

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

• Increases

• Decreases

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

• Increases

• Decreases

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

• A change in technology

• A change in input prices

• A change in price

• Future Expectations

A supply curve is always _______ sloping.

• upward

• downward

A demand curve is always _______ sloping.

• upward

• downward

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.

What are substitutes?

• Goods that are bought together

• Goods that can be used in place of one another

What are Complements?

• Goods that are bought together

• Goods that can be used in place of one another

Which of the following is an example of a substitute?

• Almond Milk and 2% Milk

• Peanut Butter and Jelly

• Coffee and Creamer

• Coffee and Sugar

Which of the following is an example of a complement?

• Almond Milk and 2% Milk

• Peanut Butter and Jelly

• Coffee and Chai Tea

• Oreos and Chips Ahoy