Economics + U.S. Gov Midterm Exam

What is the definition of demand?

• The quantity of goods consumers are willing to buy at a certain price

• The quantity of goods producers are willing to sell at a certain price

• The amount of money consumers have

• The desire to own something

Which of the following is an example of the law of demand? 4EUM.2

• As the price of apples decreases, the quantity demanded increases

• As the price of apples decreases, the quantity demanded decreases

• As the price of apples increases, the quantity demanded increases

• The quantity demanded of apples remains constant regardless of price

What is a demand curve? 4EUM.3

• A graph showing the relationship between price and quantity demanded

• A graph showing the relationship between price and quantity supplied

• A table listing quantities supplied at various prices

• A schedule showing various prices

Which of the following would cause a change in demand? 4EUM.4

• A change in the price of the good

• A change in the quantity supplied

• A change in consumer income

• A change in the quantity demanded

What is the difference between a change in demand and a change in quantity demanded?

• A) A change in demand shifts the demand curve, while a change in quantity demanded moves along the curve

• B) There is no difference

• C) A change in quantity demanded shifts the demand curve

• D) A change in demand only occurs with a change in price

What is the law of supply? 4EUM.6

• As price decreases, quantity supplied increases

• As price decreases, quantity supplied remains the same

• As price increases, quantity supplied increases

• As price increases, quantity supplied decreases

Which of the following is an example of the law of supply? 4EUM.7

• As the price of oranges decreases, the quantity supplied increases

• As the price of oranges increases, the quantity supplied decreases

• As the price of oranges increases, the quantity supplied increases

• The quantity supplied of oranges remains constant regardless of price

What is a supply curve? 4EUM.8

• A) A graph showing the relationship between price and quantity demanded

• B) A table listing quantities supplied at various prices

• C) A graph showing the relationship between price and quantity supplied

• D) A graph showing the relationship between income and demand

Which of the following would cause a change in supply?

• A change in consumer tastes

• A change in consumer income

• A change in the quantity demanded

• A change in production technology

What happens at the equilibrium price?

• Supply exceeds demand

• Demand exceeds supply

• Supply equals demand

• The price remains constant