Chp 21 Econ Study Guide
Which of these groups include both substitutes and compliments?
Group 3
Which of the following best explains the upward slope of the supply curve?
High prices motivate suppliers to produce more.
Which of the following is a characteristic of a market economy?
People have the freedom to choose from a variety of products.
The primary motive in business is to...
increase profits
What does the phrase "the market cleared" mean?
prices reached equilibrium
What does a demand schedule show?
quantities and prices
In the United States, prices are established primarily through...
the decisions of major corporations.
A surplus typically indicates that...
the price is too high
What is the main purpose of government price controls?
to correct unfairness in supply and demand
Which of the following will drive the projected increased demand for oil in the future?
transportation needs
Which sales strategy demonstrates an understanding of the principle of diminishing marginal utility?
Consumers who purchase an item at full price may purchase another on at half price.
Demand for a product tends to increase when...
consumers expect a shortage.
The man's question demonstrates that he...
does not understand the relationship between supply and demand
The market demand curve slopes downward because prices go...
down as demand goes up.
Which statement correctly summarizes the passage?
People are using oil faster than they are finding new sources.
A demand curve shifts to the right when...
people are willing to buy more of the same item at any given price.
Which factor has the MOST significant influence on the quantity supplied of any product?
price of the product.
The vertical axis of a demand curve for a product displays...
prices
What is the most that the minimum wage has rise in 5 years?
$1.00
According to the graphic above, what is the cost of a DVD when the quantity demanded by the market is 300?
15
According to the graphic above, how many DVDs will suppliers sell for $12?
150
According to the graphic above, how many additional DVDs will be sold when the price goes up from $15 to $24?
150
The minimum wage was worth the most in...
1970
According to the graphic above, how many DVDs is the market willing to purchase when the cost is $21?
200
Which example illustrates how changes in substitutes can influence demand?
The demand for Ford cars increase when the price of General Motors cars increases.
What is the main idea of the cartoon?
The demand for gasoline is greater than the supply.
Which example illustrates how changes in complements can influence demand?
The demand for light bulbs increases when the price of lamps decreases.
Which of the following statements best answers the question posed by the man in the cartoon?
When demand increases, price increases
The demand for goods and services in a particular area would probably increase if...
a new apartment building in the are filled with families.
Which factor is most likely to cause the supply of a product to decrease?
a repeal of subsidies for producers.
According to the information in this passage, supply of the product was influenced by...
business expectations.
The situation described in this passage best illustrates which of the following economic principles?
inelastic demand
Which of the following pairs of products are complements?
light bulbs and lamps
Which of the following causes a change in demand?
number of consumers
A demand curve shifts to the left when...
people are willing to buy fewer items at all possible prices
