1. in economics, The amount of a product a consumer is willing and able to buy a various possible prices during a given time is calles

a: supply

b:substitution

c:demand

c:utility

1. The tendency of consumers to replace a relatively more expensive product with a similar lower-priced product is called the :

a: substitution effect

b: income effect

c:demand effect

d:marginal effect

1. what is the relationship between quantity demand and the price of a good/ service?

a:directly

b;inversely

c:there is no relationship

d:just friends

1. which kind of demand is sensitive to a change in price?

a: perfectly inelastic

b: inelastic

c:elastic

d: unit elastic

1. which of these cause a change in the demand curve?

a: consumer tastes and preferences

b:consumer expectations

c:all of the above

d:population

1. a popular rock bands new CD receives a very bad review. the band's popularity declines and demand for their CD decreases, causing in the demand curve to shift

a: outward

b:inwards

1. if the average consumers income rise, the demand curve will shift

a: outward

b: inwards

1. if the price of butter falls, what will happen to demand for substitute goods such as margarine?

a: it will rise

b: it will fall

c: it will remain the same

d: it will be eliminated

1. construction of new houses increase, what will happen to the demand for such complementary goods at a timber, paint, and paint brushes?

a: option Five

b: it will fall

c: it will rise

d: it will remain the same

d: it will be eliminate

1. which of the following will take place if the product's demand is greater than the quantity supplied?

a: Demand elasticity will fall

b: shortage

c: equilibrium

d: surplus

1. A product such as salt has inelastic demand. how will a small increase in price affect demand for salt?

a: demand will not change

b:it will have little effect

c:demand will decrease by a lot

d: Demand will increase by a lot

1. in what type of demand elasticity does quantity demanded not changed at all in response to a change in price?

a: unit elastic

b: inelastic

c: perfectly inelastic

d: perfectly elastic

1. where is the relationship between supply and the price of a good or service?

a: directly

b:inversely

c: vertically

d: horizontally

1. which of these cause a change in supply?

a:competition

b:expectations

c:all of the above

d:inputs cost

1. New technology makes the production of CDs more efficient and less expensive, how will this affect the supply of CDs?

a: supply will increase

b:supply will remain the same

c: supply will fall

D:supply will be eliminated

1. in order to remedy A surplus, suppliers will need to increase the price.

a: true

b:false

1. in order to remedy a shortage, suppliers will need to increase the price.

a: True

b: False

Supply Activity Cotton prices rise. Motorcycle prices fall. Increase in Supply Decrease in Supply Result: Increase in Result: Decrease in (contrast to an increase in (contrast to a decrease in Quantity Supplied Quantity Supplied quantity supplied) quantity supplied 1. Plastic prices rise. 2. Modern equipment 3. A new Italian food restaurant opens. S of fidget spinners? improves refining capability. S of Italian food? S of gasoline? Change in: Change in (circle the correct curve shifter below) (circle the correct curve shifter below) Change in (circle the correct curve shifter below) Cost of Resources; Taxes; Subsidies; Cost of Resources; Taxes; Subsidies; Government Regulations; Number of Sellers Cost of Resources; Taxes; Subsidies; Government Regulations; Number of Sellers Productivity and/or Technology Productivity and/or Technology Government Regulations; Number of Sellers Productivity and/or Technology 4. The government requires 5. The government 6. Chocolate prices fall. stricter pollution controls. increases business taxes. S of brownies? S of petrochemicals? 5 of pickup trucks? Change in: Change in: Change in: (circle the correct curve shifter below) (circle the correct curve shifter below) (circle the correct curve shifter below) Cost of Resources; Taxes; Subsidies; Cost of Resources; Taxes; Subsidies; Cost of Resources; Taxes; Subsidies; Government Regulations; Number of Sellers Government Regulations; Number of Sellers Government Regulations; Number of Sellers Productivity and/or Technology Productivity andfor Technology Productivity and/or Technology 7. A volcano destroys banana trees. B. The government subsidizes 9. Innovation occurs in robotics. S of banana pudding? companies that help prevent diseases. S of new automobiles? S of disease prevention medicine? Change in: Change in: Change in: (circle the correct curve shifter below) (circle the correct curve shifter below) (circle the correct curve shifter below) Cost of Resources; Taxes; Subsidies; Cost of Resources; Taxes; Subsidies; Cost of Resources; Taxes; Subsidies; Government Regulations; Number of Sellers Government Regulations; Number of Sellers Government Regulations; Number of Sellers Productivity and/or Technology Productivity and/or Technology Productivity and/or Technology