Unit 2 Review

If you were to graph this demand schedule, the demand curve would

• slope upward from left to right

• slope downward from left to right

• be horizontal

• be vertical

Based on this graph, how many Beanie Babies were demanded at a price of $6 before they became a fad?

• 100

• 200

• 300

• 400

The movement in the graph shows that the quantity demanded of butter decreased because the

• price of butter increased

• price of margarine decreased

• price of margarine increased

• price of butter decreased

On Curve A in the graph, suppose the price dropped from $10 to $7. Would quantity demanded increase or decrease and by how much?

• Quantity demanded would decrease by 1 unit

• Quantity demanded would increase by 1 unit

• Quantity demanded would decrease by 5 units

• Quantity demanded would increase by 5 units

Find the price of $15 on the demand schedule. What point does this price and quantity correspond to in the demand curve?

• Point u

• Point v

• Point x

• Point z

What does the movement shown on this graph represent?

• a change in demand

• the inverse relationship between price and quantity demand

• the inverse relationship between price and marginal utility

• diminishing marginal utility

What does the movement from b' to b on the graph represent?

• an increase in demand

• an increase in quantity demand

• a decrease in demand

• a decrease in quantity demand

Study the illustration. At a price of $25, how much more of the product is demanded on curve D'D' than on curve DD?

• 1 unit

• 2 units

• 3 units

• 4 units

In the experiment described in the passage, Noumenon Corporation was trying to determine the price that

• would create the most sales

• would bring in the most money

• most competitors could not beat

• most consumers could afford

Which products shown in the table are likely to have elastic demand?

• gasoline in general, services of medical doctors

• fresh tomatoes, gasoline from a particular station, butter

• fresh tomatoes, gasoline in general, butter

• gasoline from a particular station, gasoline in general, butter