ACADEC ECON Unit 1 Review

What does this graph show?

• Shortage
• Surplus
• Supply Table
• Equilibrium

What is the Equilibrium Price?

• 1
• 2
• 3
• 4

Goods that are bought and used together are 

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

The diagram represents a(n)

• increase in supply
• decrease in supply
• change in quantity supplied
• none of the above

The diagram represents a

• increase in demand
• decrease in demand
• change in quantity demand
• none of the above

Assume the image is showing the market for apples.  Which of the headlines could indicate the pictured shift is occurring in the market?

• Pesticides on apples linked to mouth cancer.
• Storms destroy apple orchards.
• An apple a day really does keep the doctor away.
• New genetic strain leads to apple trees that produce twice as many apples.

The Law of Demand says that price and quantity have a(n)

• direct relationship
• inverse relationship
• marginal utility
• diminishing utility

This part of the market determines DEMAND

• buyers
• sellers
• suppliers
• store owners

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected