Economics - Supply and Demand

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

What does the law of demand state?

• Price has no effect on quantity demanded

• When the price goes down, people buy more

• Demand is always constant

• When the price goes up, people buy more

Which of the following BEST describes DEMAND?

• A measurement

• A data point

• A relationship

• A definition

the amount of “stuff” that is produced by firms and offered for sale.

• supply
• direct
• left
• the estimated amount of a given commodity (good or service) people will buy at different prices

The thing that you give up (the next best alternative) when you make a decision is known as

• Opportunity Cost
• Scarcity
• Incentive
• Choice

Consumers buy more of a good when its price decreases and less of a good when its price increases. This is known as...

• The Law of Demand
• The Law of Supply
• Law and Order
• The Law of Equilibrium

Who are the necessary risk-takers in a market economy?

• Buyers

• Sellers

• Enterpreneurs

• Elected Politicians

A person who comes up with a new idea for a product, and they actually make it and sell it.

• resource

• human resources

• consumer

• entrepreneur

Which of the following best describes QUANTITY SUPPLIED?

• A relationship

• A data point

• A definition

• A measurement

What does the law of supply state?

• Price has no effect on quantity supplied

• When the price goes down, producers supply more

• When the price goes up, producers supply more

• Supply is always constant