Question

Highlight the correct answer in yellow, or write it into the answer box provided.

1. The Law of Demand states that as the price of a good or a service increases, the quantity demanded: INCREASES / DECREASES

2. The Law of Supply states that when the price or a good or a service increases, the quantity supplied: INCREASES / DECREASES

3. When we talk about “supply” in economics, we mean:

4. When we talk about “demand” in economics, we mean:

5. When we talk about “price” in economics, we mean:

A. What a buyer pays for one unit of a specific good or service.

B. What the producer receives for selling one unit of a good or service.

C. What it costs to produce one unit of a good or service

D. None of the above

E. All of the above

F. A and B

6. A Supply Curve is a line which shows the relationship between:

and

 

7. A Demand Curve is a line which shows the relationship between:

and

8. In economics, “equilibrium” can be defined as:

9. When drawing supply and demand graphs, what do we always show on the X-axis?

PRICE / QUANTITY

10. When drawing supply and demand graphs, what do we always show on the Y-axis?

PRICE / QUANTITY

11. The assumption behind a demand and supply curves is that no relevant economic factors, other than the product’s price, are changing. Economists refer to this assumption using a Latin phrase which means “all other things being equal.” Any given demand or supply curve assumes that all else is held equal. In economics, which Latin name describes this assumption?

IN ARCADIA EGO / AD VALOREM / CETERIS PARIBUS / VOX NAHILI / FELIX CULPA

12. A change in quantity demanded which is caused by a change in price appears on the supply and demand graph as:

A MOVEMENT ALONG THE DEMAND CURVE / A SHIFT IN THE DEMAND CURVE’S POSITION

13. An increase in supply when new competitors enter a market appears on the supply and demand graph as a:

A MOVEMENT ALONG THE SUPPLY CURVE / A SHIFT IN THE SUPPLY CURVE’S POSITION

Answer 1

1. The Law of Demand states that as the price of a good or a service increases, the quantity demanded: DECREASES

2. The Law of Supply states that when the price or a good or a service increases, the quantity supplied: INCREASES

3. When we talk about “supply” in economics, we mean: A quantity of a commodity that seller is willing to sell at a particular price in a given period of time.

4. When we talk about “demand” in economics, we mean: A quantity of a commodity that a consumer is willing to purchase at a particular price in a given period of time.

5. When we talk about “price” in economics, we mean: what buyer pays and what seller receives against a particular commodity. (F) A and B

6. A Supply Curve is a line which shows the relationship between: the price and quantity supplied of a commodity.

7. A Demand Curve is a line which shows the relationship between: the price and quantity demanded of a commodity.

8. In economics, “equilibrium” can be defined as: a point where the demand for and the supply of goods become equal.

9. When drawing supply and demand graphs, what do we always show on the X-axis?

the QUANTITY of a commodity.

10. When drawing supply and demand graphs, what do we always show on the Y-axis?

the PRICE of a commodity.

11. That Latin phrase is CETERIS PARIBUS.

12. A change in quantity demanded which is caused by a change in price appears on the supply and demand graph as:

A MOVEMENT ALONG THE DEMAND CURVE

13. An increase in supply when new competitors enter a market appears on the supply and demand graph as a:

A SHIFT IN THE SUPPLY CURVE’S POSITION