Unit 2 Econ Review

Front

The inverse relationship between price and quantity that describes what consumers will buy is

Back

Law of Demand

Front

What is the substitution effect?

Back

When a consumer switches from one product to another due to a change in relative prices.

Front

Charlotte is more likely to purchase a similar product to her favorite snack because:

Back

It is less expensive

Front

When the price of a product increases, the demand for the product will DECREASE

Back

True

Front

Zoe, Kai, and Ethan are running a lemonade stand. As consumers' tastes change in favor of their lemonade, demand will shift to the

Back

Right

Front

Why is market equilibrium important to know?

Back

It allows people to know what the price of good or services will be.

Front

Which of the following is NOT a demand shifter? Options: Income of consumers, Increase in population, An increase in supply, Tastes and Preferences

Back

An increase in supply

Front

The quantity of a product a producer is willing to sell at various prices is called 

Back

Supply

Front

What is the primary goal of a business?

Back

To maximize profit

Front

The Law of Supply states that as the price for a good goes up, the quantity

Back

Increases