CH5: Demand & Supply Quiz/Review

The Law of Demand states...

• As the price of a good or service decreases, the quantity demanded decreases (and vise versa).

• As the price of a good or service increases, the quantity demanded decreases (and vise versa).

• As the price of an inflation or service increases, the quantity demanded increases (and vise versa).

• As the price of a good or service increases, the quantity destroyed decreases (and vise versa).

The Law of Supply states...

• As the price of a good or service increases, the quantity supplied decreases (and vise versa).

• As the price of a good or service increases, the quantity supplied remains constant (and vise versa).

• As the price of a good or service increases, the quantity supplied remains constant (and vise versa).

• As the price of a good or service increases, the quantity supplied becomes unregulated (and vise versa).

What is the only thing that can cause movement along the curve?

• Supply

• Demand

• Elasticity

• Price

What is a substitute good?

• A good that is used in place of another good.

• A good that is used together with another good.

• A good that has no relation to another good in terms of consumption.

• A good that decreases in demand when the price of another good decreases.

What does the graph represent?

• An increase in supply.

• An increase in demand

• A decrease in supply

• A increase in polarity

What does the graph represent?

• An increase in supply.

• An increase in demand

• A decrease in supply

• A increase in polarity

What does a shift to the right of the demand curve indicate?

• A decrease in demand for a good or service.

• An increase in demand for a good or service.

• A decrease in the price of a good or service.

• An increase in the price of a good or service.

What is a complementary good?

• A good that is used in place of another good.

• A good that is used together with another good.

• A good that has no relation to another good in terms of consumption.

• A good that increases in demand when the price of another good decreases.

How would the headline "Dairy Builds Strong Bones" affect the demand curve for Milk?

• It would cause a decrease in demand, causing the demand curve to shift to the left.

• It would cause a decrease in demand, causing the demand curve to shift to the right.

• It would cause an increase in demand, causing the demand curve to shift to the right.

• They would be no change to the market.

How would the headline "Blueberries Cause Bad Breath" affect the demand curve for Blueberries?

• It would cause a decrease in demand, causing the demand curve to shift to the left.

• It would cause a decrease in demand, causing the demand curve to shift to the right.

• It would cause an increase in demand, causing the demand curve to shift to the right.

• They would be no change to the market.