Unit 2 Test Demand, Supply and Price

What is a basic principle of the law of demand?

• The higher the price the more people will want the good.
• Everyone has a limited income to buy goods and services.
• When Services are bad Demand on the Servers increases.
• When the price of a good or service is lower, people will buy more of it.

When a consumer is able and willing to purchase a good or service with is the consumer creating?

• Consumption
• Demand
• Elasticity
• Allocation

How is the FUTURE price related to CURRENT demand?

• If the price is expected to rise, current demand will drop.
• If the price is expected to fall, current demand will rise.
• If the price is expected to rise, current demand will rise.
• Future price is not related to current demand

What kind of system is the United States economy based on?

• Centralized
• Oligopoly
• Market
• Production

How did the existence of the baby boom generation change demand in the United States?

• Demand was raised for different goods and services with each age the baby boomers reached.
• Creation and Closure of Garden City West High School
• An Increase in demand of government services Baby Boomers need, have led the nation into Trillions of dollars in debt.
• All of the Above

What does it mean when the demand for a product is inelastic?

• People will NOT buy any of the product when the price goes up.
• A price increase does not have a significant impact on buying habits.
• Customers are sensitive to a change in price.
• There are few substitutes for a delicious Peanut Butter & Jelly Sandwich

Which of the following is a good that might NOT be bought when prices rise?

• Substitute
• Inferior
• Income
• Luxury

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

• Rise in demand for nursing homes.
• Rise in supply of pizza
• Rise in demand for shelter
• Decrease in demand for cars

What is a company's total revenue?

• the price of the company's best selling good
• the amount a company receives for selling its goods
• the company's expenses
• the company's profit percentage over the long run

What example of an embargo was the most consequential in American History?

• Canada Water Embargo
• Three Mile Island
• OPEC oil Embargo
• England Taxing Coffee