Supply and Demand Review

Which of these is the best description of a normal supply curve?

• Its slope is completely horizontal

• Its slope goes up when the diagram is read from right to left

• Its slope goes up when the diagram is read from left to right

• Its slope is completely vertical

Which would an economist consider a substitute for coffee?

• Tea

• Water

• Soda

• Juice

Which would an economist consider a complement to coffee?

• Tea

• Water

• Donuts

• Spaghetti

When the price of something increases, the quantity demanded

• Increases

• Stays the same

• Decreases

• Reverses

Which is most likely a complement to an iphone?

• DVD's

• speakers

• apps

• pencils

Which of these BEST describes the influence of high prices on the behavior of consumers?

• They are an incentive for consumers to buy less

• They encourage consumers to modify their supply schedules

• They are an incentive for consumers to buy more

• They have no effect on Consumers

New technology can _______

• Both lower production costs and increase productivity

• None of these is correct

• lower production costs

• increase productivity

The supply of goods matches the demand of goods

• surplus

• demand curve

• equilibrium price

• shortage

A sum of money granted by the government to a business is known as a ____

• shortage

• surplus

• subsidy

• price

The supply and demand model shows _____ and ______

• price, surplus

• price, quantity

• surplus, shortage

• surplus, quantity