Unit 3 - Supply and Demand

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

A change in quantity demanded is shown

• at various points on the demand curve
• with a new demand curve drawn above or below the original demand curve
• with a vertical line

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

• income effect
• substitution effect
• elasticity effect
• demand effect

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

• it goes up
• it goes down
• it stays the same
• it is not effected

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

• it goes up
• it goes down
• it stays the same
• it is not effected

Market clearing price means the same thing as equilibrium

• True

• False

Pencils and pens are substitutes

• True

• False

A change in taste and style would result in a...

• Shift in demand

• Shift in supply

The situation that exists when quantity demanded changes greatly in response to a change in price.

• Elastic Demand

• Inelastic Demand

• Law of Demand

• Demand