Supply and Demand Test

Front

What happened to the market for agricultural goods during the Dust Bowl of the 1930's when many farmers’ agricultural goods were destroyed?

Back

Decrease in supply

Front

What is the Law of Supply?

Back

When price increases, quantity supplied increases.

Front

Which of the following explains the Law of Demand? When prices go down, people have an increased income., When the price of a good increases, people tend to buy substitutes instead., People prefer inferior goods during a recession., People often buy eggs and bacon together.

Back

When the price of a good increases, people tend to buy substitutes instead.

Front

Which of the following pairs are Complementary Goods? Jelly & Jam, Eggs & Bacon, Apples & Broccoli, Mugs & Candles

Back

Eggs & Bacon

Front

Assume peanut butter and jelly are complementary goods. When the price of jelly increases, what will happen to the demand for peanut butter?

Back

It will decrease.

Front

The cost of wood increases sharply. What happens to the cost for pencils?

Back

It will increase due to cost of the wood.

Front

If a good has inelastic demand, an increase in price will result in what kind of change in quantity demanded?

Back

a small decrease in quantity demanded

Front

The cost of leather goes down sharply. What happens to the market for leather belts today?

Back

Increase in Supply

Front

What happens to the market for fast food today?

Back

Decrease in Supply

Front

It's Wednesday and Black Friday is on the horizon. What happens to the market for TVs today?

Back

Increase in Demand