lesson 5 test: Demand and Supply

A product that is used or consumed jointly with another product ;tennis racket and tennis ball is one example A. complementary good B. substitute C. used D similar

A. complementary good

the degree to which the quantity demanded responds to changes in price is called A. elasticity B. revanue C. schedule D. utility

A. elasticity

A measure of the degree to which the quantity demanded or supplied of a good or service changes in response to a change in price A. inelasticity B. elasticity C. inflexibility D. demand curve

b. elasticity

an economic law stating that as the price of a good or service increases, the quantity supplied increases, and vice versa. A. law of supply B. law of demand C.law of demand D.law of equity

A. law of supply

quantity demanded moves long the demand curve in response to changes in A. price B. income C. preferences D. expectations

A. price

which of these is most likely to happen to demand of clothes in a clothing store when blizzards keep customers at home? A.the demand curve shifts to the left B.the demand curve becomes flatter C.the demand curve shifts to the right D.the demand curve becomes steeper

A. the demand curve shifts to the left

according to the law of supply, what happens as price increases A.the quantity supplied increases B.the quantity supplied decreases C.supply curve shifts to the left D.supply curve shifts to the right

A. the quantity supplied increases

a tax on the manufacture or sale of a good. we sometimes call it a sin tax A.margin tax B. excise tax C. profit tax D income tax

B excise tax

which of these is most likely to quikly become available in larger quantities as a result of a price increase A.airline service B.babysitters C.medical doctors D.midsize cars

B.babysitters

supply depends on the willingness and ability of A.donors to contribute B.producers to produce C.advertisers to promote D.consumars to purchase

B.producers to produce

which of these would most likely increase the supply of soccer balls? A. a transportation strike B. a government excise tax c. a decrease in the price of raw materials D. an increase in the supply of tennis balls

C. a decrease in the price of raw materials

an increase or decrease in quantity supplied (the amount of a good or service that producers are willing and able to offer for sale at a specific price) as a result of a change in price. A. change in demand B. change in price C. change in quantity supplied D. stays the same

C. change in quantity supplied

The law of demand states that as quantity demanded decreases A. wages decrease B. production increases C. price increases D. quality decreases

C. price increases

the amount of money a film makes in the course of doing business A. profit B. expenses C. Revenue D. capital

C. revenue

which of these is the best example of diminishing marginal utility A. a shortage of bike paths makes bicycles less useful B. Bicycles become less useful as they get old and start to rust C.some one who has one bicycle will have less use for another D.people with cars have less use for bicycles than people with out cars have.

C. someone who has one bicycle will have less use for another.

in the summer picnic season, a sharp rise of burgers may lead to an increase in demand for A.buns B.relish C.chicken D.coleslaw

D. chicken

A graph that shows the relationship between price and the quantity that producers are willing and able to supply A. demand curve B. demand chart C. supply chart D. supply curve

D. supply curve