Supply and Demand Review

The Law of Demand says that as Price increases, quantity demanded will

• stay the same

• decrease

• increase

The shape of all demand curves slope this way from left to right

• down

• horizontal

• up

• vertical

A decrease in the price of butter will have which of the following effects on margarine

• increase the QD

• decrease the QD

• increase D

• decrease D

What is the only thing that can cause a change in quantity demanded for an item

• change in substitute good price

• change in the price of the item

• change in income of consumers

• change in style

On the graph displayed, what is being shown if we are moving from point A to point B?

• a decrease in Qd

• an increase in Qd

• a decrease in D

• an increase in D

Which direction will the demand curve shift to show demand is increasing?

• up

• down

• right

• left

The additional satisfaction gained by purchasing one additional unit of an item is called this

• subsidy

• quota

• marginal revenue

• marginal utility

The Law of Supply states that as Price increases, quantity supplied will

• decrease

• increase

• stay the same

• explode

The most important concept to producers is

• quality product

• low price

• profit

• utility

The shape of the supply curve is what from left to right?

• downward sloping

• upward sloping

• horizontal

• vertical