Unit 2 Final Review

Front

Microeconomics deals with:

Back

individual units in the economy.

Front

Demand refers to…

Back

a consumer's desire & willingness to pay a price for a specific good or service.

Front

For the law of demand, as price rises, what happens to quantity demanded?

Back

it goes down

Front

Which of the following is a demand shifter? Availability of Resources, New Technology, Tastes & Preferences, Government Subsidies

Back

Tastes & Preferences

Front

When the price of a good or service changes…

Back

there would be a movement on the current curve.

Front

The movement from point A to point B on the graph shows:

Back

an increase in quantity demanded.

Front

Other things equal, when the price of a good falls, the quantity demanded of the good rises. This is…

Back

the law of demand

Front

If peanut butter and jelly are considered complementary goods, then that means…

Back

one good is often used together with the other

Front

If soy milk and almond milk are considered substitute goods, then that means…

Back

one good is often used in place of the other

Front

For the law of supply, as price rises, what happens to quantity supplied?

Back

it goes up