Unit 1 Chapter 3 Quiz Supply and Demand
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:
Andy's demand for beer to increase
The demand curve shifts to the left
Demand goes down
The demand curve shifts to the right
Demand goes up
What items could cause equilibrium quantity to go up
Demand goes up Supply goes up
The information that markets generate to guide the distribution of resources is called:
Price Signals
There is a movement up the demand curve
Quantity demanded goes down
There is a movement down the demand curve
Quantity demanded goes up
The demand curve has a negative slope
True
What is the definition of a shortage
When quantity demanded is greater than quantity supplied
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
law of demand
When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________.
quantity supplied
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________
shortage or excess demand
A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ .
supply curve to the right