Econ 7
The quantity demanded of product is affected by
Price
According to this demand curve, how many movie videos will be demanded at a price of $10?
1000
According to this supply curve, 400 movie videos will be supplied at what price?
12$
Study the illustration. At a price of $25, how much more of the product is demanded on curve D'D' than on curve DD?
2 units
Based on this graph, how many Beanie Babies™ were demanded at a price of $6 before they became a fad?
200
What does the movement shown on this graph represent?
A change in quantity supplied
What does the movement from b' to b on the graph represent?
A decrease in demand
Which of the following choices could cause the movement shown in this graph?
A decrease in income
Diminishing marginal utility refers to the fact that
Additional satisfaction declines as additional units of an item are consumed
Suppose the demand curve shifts from D1 to D2, as shown on the graph. How do the quantity supplied and quantity demanded change at the new equilibrium price?
Both quantity supplied and quantity demanded increase
Demand for one particular brand of coffee is probably
Elastic
The interaction of supply and demand determines the
Equilibrium price
According to this supply curve, if the price of movie videos decreases from $18 to $16, the quantity supplied will
Fall from 1000 to 800
According to this demand curve, if the price of movie videos increases from $14 to $16, the quantity demanded will
Fall from 600 to 400
If the price of an item rises, quantity demanded usually
Falls
Which products shown in the table are likely to have elastic demand?
Fresh tomatoes, gasoline from a particular gas station, butter
Which products shown in the table are likely to have inelastic demand?
Gasoline in general and service medical doctors
The principle that states that the more you have of something, the less satisfaction you will get from an additional unit is the
Law of diminishing marginal utility
Generally, the more substitutes there are for a good, the
More elastic a demand
The movement in the graph shows that the quantity demanded of butter decreased because the
Price of margarine decreased
According to the law of supply, higher prices prompt producers to
Produce more
On Curve A in the graph, suppose the price dropped from $10 to $7. Would quantity demanded increase or decrease and by how much?
Quantity demanded would increase by 1 unit
If you were to graph this demand schedule, the demand curve would
Slope downward from left to right
When the price of a good is too high for consumers, they look for
Substitutes
The movement shown in these graphs represents a change in what?
Supply
If the price of a product is above its equilibrium price, the result is a
Surplus
Which of the following choices could cause the movement shown in graph C?
Taxes increase
Which of the following choices could cause the movement shown in these graphs?
Technology improves production
What does the movement shown on this graph represent?
The inverse relationship between price and quantity demanded
Find the price of $15 on the demand schedule. What point does this price and quantity correspond to in the graph?
X
