Unit 2 Economics Review Quizizz

Thousands of people leave a small town due to a factory closing down.  Sales at the local grocery store become slow. What causes this change?

• Prices or availability of substitutes
• Prices or availability of complementary goods
• Change in the weather or season
• Change in the number of buyers

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above

The Law of Demand says that price and quantity have a(n)

• direct relationship
• inverse relationship
• marginal utility
• diminishing utility

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

• Demand for gasoline will decrease 
• Demand for gasoline will increase
• Demand for gasoline will stay the same

If the price of Frozen Yogurt increased then the demand for ice cream will 

• increase
• decrease

The downward slope of a demand curve

• represents the law of demand
• shows that as the price of a good rises, consumers increase the quantity they demand
• indicates how the quantity demanded changes when incomes rise and the good is a normal good
• indicates how demand changes when incomes rise and the good is a normal good

When the price of good A rises, people start to drink good B. In this case, what is good B considered?

• luxury good

• complementary good

• substitute good

• normal good

The law of demand states; there is an INVERSE relationship between price and quantity demanded. Which of the following is not a true statement?

• Price goes up qty demanded goes down.

• Price goes down, qty demanded goes up.

• Price goes up, demand goes down.

• All answers are correct.

the quantity of a good or service that producers are willing and able to offer for sale at various prices

• Demand

• Supply

• Revenue

• Capital