Economics and Financial Literacy - Supply and Demand Test Review

The law of demand states that when prices INCREASE the quantity demanded will _________________.

• decrease

• increase

• remain the same

• fluctuate unpredictably

When we want to show a DECREASE in demand, we shift the demand curve to the _________________

• left

• right

• up

• down

If a million more people move to Florida, demand housing would _________________.

• increase

• decrease

• remain the same

• fluctuate unpredictably

If the price of peanut butter were to increase, then demand for JELLY would _________________.

• decrease

• increase

• remain the same

• fluctuate unpredictably

The demand determinants are: number of buyers, income of buyers, _______________ of buyers, expectations of buyers and related goods.

• preferences

• age

• location

• education

The point on the graph where supply and demand are equal is called _________________.

• equilibrium point

• intersection point

• balance point

• neutral point

The _______________ graph shows the change in price and quantity when an increase or decrease in supply or demand takes place.

• supply and demand

• price elasticity

• production possibility

• cost-benefit

The law of supply states that when prices decrease the quantity supplied will _________________.

• decrease.

• increase.

• remain unchanged.

• fluctuate randomly.

If we want to show a decrease in supply we shift the supply curve to the _________________

• left

• right

• up

• down

Pizza shop owner finds that her resource costs go up by 50%. In this case supply of pizza would certainly _________________.

• decrease

• increase

• remain the same

• fluctuate unpredictably