Econ - Unit 2 Review - Supply and Demand

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

• Consumption

• Elasticity

• Demand

• Utility

Any increase in the price of a good will result in the demand curve...

• Shifting to the left

• Shifting to the right

• moving along the curve

• It will not impact the curve

The satisfactions we derive from consuming a good or service. It decreases as we consume more of the product.

• Consumption

• Elasticity

• Demand

• Utility

If a good has elastic demand, any increase in price will result in

• a small decrease in quantity demanded.

• a large decrease in quantity demanded.

• a small increase in quantity demanded.

• a large increase in quantity demanded.

What kind of changes would be expected in the demand of a country that has a growing population?

• a rise in the demand for shelter

• a rise in the demand for recreation

• a shift in the demand for high-quality food

• a lowering in the demand for automobiles

When consumer income decreases,

• demand for normal goods increases.

• demand for normal goods stays constant.

• demand for inferior goods increases.

• supply for inferior goods increases.

Which of the following products is likely to have an inelastic supply?

• Handcrafted artisanal chocolates.

• Fresh fruits and vegetables.

• Insulin for diabetic patients.

• Fashionable clothing.

Any increase in the supply will result in a curve shift...

• To the left

• To the right

• Along the curve

• It will not move the curve

An effective price floor causes which of the following?

• Equilibrium

• Surplus

• Shortage

• Market reform

When demand shifts to the left, what will happen to the market equilibrium price?

• Price increases

• Price decreases

• Price remains constant

• It depends on the cause of the shift.