4th Economics

When the price of a good increases it results in a decrease in demand for another good. These two commodities are

• Complements

• Competitive

• Substitutes

• Not related

One purpose of advertising is to

• shift the demand cure for a good to the right.

• shift the demand curve for a good to the left.

• shift the supply curve for a good to the right.

• increase the quantity demanded of a product.

Quantity demanded may be defined as:

• The total number of units of a commodity purchased by a community in a given period.

• The number of units of a commodity that households are willing and able to purchase at a given price during a given period.

• The entire demand schedule when it is plotted on a graph.

• The need and wants of a society represented by the number of goods and services produced in the society.

A change in demand is said to take place when there is

• a movement along the demand curve.

• a shift in the demand curve.

• a change in the price of the product

• a shift in the supply curve.

An equilibrium price is

• the price at which a good is sold.

• a price that will never change regardless of the period of time.

• The highest price that can be charged for a good.

• The price at which the demand and supply curves intersect.

Which of the following would cause the demand curve for chocolate bars to shift to the right?

• A decrease in the price of the chocolate bars

• A decrease in the price of the cocoa beans

• A chocolate is good for your health advertising campaign

• A health scare about the dangers of eating too much sweet food

Quantity supplied is the amount of a commodity that

• a firm wishes to sell and is able to sell at a given price over a given period of time.

• a firm actually sells during a given period of time.

• Households wish firms to sell during a given period of time.

• is exchanged between consumers and producers at varying prices.

What does the equilibrium price in a market show?

• The price at which a company will get the highest number of sales

• The price at which quantity supplied is equal to quantity demanded

• The price at which the most profit will be made

• The price at which all production costs will be covered

What does a typical supply curve show about the relationship between the amount supplied of a product and its price?

• Firms will supply more at a lower price

• Consumers will buy more at a higher price

• Firms will supply more at a higher price

• Consumers will buy more at a lower price

What is effective demand for a good or service?

• A want, backed up by money to purchase the item

• A need, by all consumers desiring the item

• A demand depending on level of income

• A demand by one group of consumers