Econ Alive! Ch. 5 Demand and Supply

The law of demand states that as quantity demanded decreases

• wages decrease.

• production increases.

• price increases.

• quality decreases.

In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in demand for

• buns

• relish

• chicken

• coleslaw

Quantity demanded moves along the demand curve in response to changes in

• price

• income

• preferences

• expectations

Which of these is most likely to happen to demand for clothes in a clothing store when blizzards keep customers at home?

• The demand curve shifts to the left.

• The demand curve becomes flatter.

• The demand curve shifts to the right.

• The demand curve becomes steeper.

Supply depends on the willingness and ability of

• donors to contribute.

• producers to produce.

• advertisers to promote.

• consumers to purchase.

According to the law of supply, what happens as price increases?

• The quantity supplied increases.

• The quantity supplied decreases.

• The supply curve shifts to the left.

• The supply curve shifts to the right.

Which of these would most likely increase the supply of soccer balls?

• a transportation strike.

• a government excise tax

• a decrease in the price of raw materials

• an increase in the supply of tennis balls

The degree to which the quantity demanded responds to changes in price is called

• elasticity.

• revenue.

• schedule.

• utility.

Which of these is most likely to quickly become available in larger quantities as a result of a price increase?

• airline service

• babysitters

• medical doctors

• midsize cars

Which of these is the best example of diminishing marginal utility?

• A shortage of bike paths makes bicycles less useful.

• Bicycles become less useful as they get old and start to rust.

• Someone who has one bicycle will have less use for another.

• People with cars have less use for bicycles that people without cars.