What does the law of demand state?

• Higher price leads to higher quantity demanded

• Higher price leads to lower quantity demanded

• Demand is unaffected by price

• Price and quantity demanded always increase together

What is represented by a demand curve?

• The relationship between supply and demand

• The quantity demanded at various price levels

• The equilibrium price of a good

• The production cost of goods

Which of the following is NOT a factor causing a shift in the demand curve?

• Changes in income

• Changes in consumer preferences

• Changes in the price of the good itself

• Changes in the price of substitutes

What is an example of complementary goods?

• Coca-Cola and Pepsi

• iPhones and phone cases

• Corn and wheat

• Coffee and tea

What happens to the supply of a good when the price increases, according to the law of supply?

• It decreases

• It remains constant

• It increases

• It fluctuates randomly

What could cause a shift in the supply curve?

• Change in price of the good

• Change in the number of suppliers

• Consumer confidence

What term describes the point where demand equals supply in a market?

• Demand curve

• Market mechanism

• Equilibrium

• Elasticity

Which of the following is an example of a factor affecting supply?

• Consumer income

• Technology improvements

• Price of substitutes

• Personal preferences

How does an increase in personal disposable income affect demand?

• It shifts the demand curve to the left

• It causes movement along the demand curve

• It shifts the demand curve to the right

• It decreases the quantity demanded

What is the effect of natural disasters on the supply curve?

• It shifts the supply curve to the right

• It shifts the supply curve to the left

• It causes movement along the supply curve

• It has no effect on the supply curve