Supply Demand shift

If the price of printers goes down, what happens in the market for ink cartridges?

• Supply increases.

• Supply decreases.

• Demand increases.

• Demand decreases

Generally speaking, the lower the price, the greater the quantity demand.

• True

• False

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up

• it goes down

• it stays the same

• it is not effected

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up

• it goes down

• it stays the same

• it is not effected

What are Substitute Goods?

• Items that people tend to buy more of when their incomes increase. This is true of most goods and services.

• Items that people purchase more of when their incomes decrease. These items tend to be low-cost options for saving money.

• Items that may replace each other when used or consumed.

• Items that are almost always consumed or used together.

New robot technology increases productivity of car producers. What happens to market for cars?

• Supply shifts left

• Supply shifts right

• No change in supply

Cost of steel increases. What happens to market for cars?

• Supply shifts left

• Supply shifts right

• No change in supply

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

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

How does an increase in the price of a substitute good affect the demand for a product?

• The demand for the product will become elastic.

• The demand for the product will increase.

• The demand for the product will remain unchanged.

• The demand for the product will decrease.