Supply and Demand Test

True or false: Revenue is the money a company makes.

• True

• False

Pepsi and Coke are an example of...

• Complementary goods

• Substitute goods

The Law of Demand is...

• As prices go up, people will buy less of a good.

• As prices go up, people will buy more of a good.

• As prices go up, people will buy the same amount of a good.

• As prices go up, the demand curve will shift to the left.

When the price of a good increases, the quantity demanded

• increases
• decreases
• remains unchanged
• reverses

When there is a shortage the price will usually? 

• rise
• fall
• remain the same
• equilibrium

An individual or group who purchases goods.

• producer
• consumer
• goods
• services

The amount of goods or services available is called?

• supply
• demand
• producer
• consumer

Demand

• Amounts of a particular good or service consumers are willing and able to buy at different prices at a particular time.

• Quantities of a good or service that producers are willing and able to sell at different prices at a particular time.

• A measure that shows consumers' responsiveness, or elasticity of the quantity demanded of a good or service to a change in its price.

• New, original, or groundbreaking idea, product, or improvement.

What is equilibrium in economics?

• A state of balance where supply exceeds demand.

• A state of balance where demand equals supply.

• A state of balance where there is no demand or supply.

• A state of balance where demand exceeds supply.

Describe the factors that can cause a shift in the supply curve.

• Changes in production costs, changes in technology, changes in the number of suppliers, taxes and subsidies, and expectations of future prices.

• Changes in population, changes in inflation rates, changes in government spending

• Changes in the weather, changes in exchange rates, changes in interest rates

• Changes in demand, changes in consumer income, changes in consumer preferences