Supply and Demand Review

In a market, price is determine by the interaction of:

• inputs and outputs

• supply and demand

• push and pull factors

• demand and means on distribution

Goods that are bought and used together are 

• complementary goods
• substitute goods
• income goods
• unrelated goods

Goods that are viewed as interchangeable with one another are considered

• complementary goods
• substitute goods
• income goods
• unrelated goods

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

• increased

• decreased

When the demand curve has shifted to the right, this suggests demand has

• increased

• decreased

According the Law of Supply, if price increases the amount suppliers are willing to supply will

• increase

• decrease

• stay the same

According to the Law of Demand, if price increases then the quantity demanded will...

• increase

• decrease

• stay the same

This law explains why the demand curve goes downward. People get less and less value or happiness the more they consume a particular item.

• The Law of Supply

• The Law of Diminished Marginal Utility

• The Law of Increased Happiness

• Demand's Constant

Which of the following does not shift the supply curve?

• Government regulations

• Number of sellers

• Cost of inputs

• Increase in price

Which of the following does not shift the demand curve?

• Consumer Income

• Tastes and Preferences

• Price of Complementary and Substitute Goods

• Cost of Inputs