Supply and Demand Test

Front

Which of the following best describes the Law of Demand? Options: As price goes down, demand goes down. (and vice versa)., As price goes down, demand goes up (and vice versa)., As demand goes down, supply goes up., As demand goes up, price becomes elastic.

Back

As price goes down, demand goes up (and vice versa).

Front

A change in demand is shown

Back

with a new demand curve above or below the original demand curve

Front

A change in quantity demanded is shown

Back

at various points on the demand curve

Front

Consuming more of one good because of a change in price of another good is known as the

Back

substitution effect

Front

This occurs when you feel like you have less money when the price of a good rises.

Back

Income Effect

Front

A table that lists the quantity of a good that a single person will buy at each price in a market.

Back

demand schedule

Front

The demand curve always slopes

Back

down and to the right

Front

What goes on the horizontal axis of a demand graph? Options: price, quantity demanded, quantity supplied, change in demand

Back

quantity demanded

Front

Which of the following would NOT cause a demand curve to shift? a change in a consumer's income level, a change in population, a change in a consumer's expectations, a change in the price of a product.

Back

a change in the price of a product.

Front

If a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?

Back

it will go down