Chapter 1 Review

Front

When the demand curve shifts to the left, this suggests demand has

Back

decreased

Front

When price increases, quantity demanded

Back

decreases

Front

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

Back

Supply would Decrease

Front

When the price of Nike brand shoes increases, we will probably go purchase a brand like Adidas or Pumas instead. Which of the following best explains this behavior?

Back

Substitution Effect

Front

In Jim's household, everyone consumes and enjoys milk. Recently, the price on milk increased by two dollars, but despite this increase, Jim and his family still continue to buy the same amount of milk, for they consider it a necessity. Jim's family's demand for milk would be considered fairly

Back

inelastic

Front

When the price on Dasani bottle water decreased, Brad quit buying Nestle bottled water and switched over to Dasani. Brad's demand for Nestle water is fairly

Back

elastic

Front

When price increases, quantity supplied

Back

increases

Front

A restaurant makes special hamburger. Everyone loves the hamburger and wants to order it. Every night the restaurant runs out of hamburgers after only an hour. What will most likely happen to the price of the burger?

Back

The price of the hamburger will go up.

Front

Lucas fixes his friend's sink. He is providing a_____________.

Back

service

Front

Things that people make or grow are called_____________.

Back

goods