Supply and Demand

As prices rise, sellers will offer more goods and services for sale.

• Supply
• Law of Supply
• Change in supply
• demand

A shortage of a good is often a signal for a producer to

• lower the production of that good
• lower the prices of thay good
• raise the prices of that good
• shift production to another good

An increase in price of jelly causes a decrease in demand of peanut butter. The products are

• complements
• demand elastic
• unrelated
• subtitutes

An increase in the price of a product will reduce the amount of it purchased because:

• the higher price means that real incomes have risen.
• supply curves are upsloping.
  
• consumers substitute relatively high-priced for relatively low-priced products.
• consumers will substitute other products for the one whose price has risen.

The Law of Demand

• the desire to own something
• when a good's price is lower, consumers will buy more of it. When a good's price is higher, cosumers will less more of it

• describes how much of a good is offerned for sale at a specific price.
• the higher the price, th elarger the quantity produced

What might cause a market supply curve to shrift to the right

• increased labour costs
• increased government subsidies
• increased product advertising
• lower income tax rates

If a market is at equilibrium and if there is a sudden increase in demand, you have a

• surpuls
• Shortage
• Stays the same
• none of the above

Which of the following factors will not cause the demand curve to shift

• advertising
• population
• consumer expectations
• price

Consumers demand more of this type of good when their income rises

• normal good
• inferior good
• elastic good
• Subsitiution good

The condition of supply and demand exactly balancing one another

• Disequilibrium

• Law of Supply

• Equilibrium

• Scale Up