Unit Test Answers

The graph shows a supply curve.Which events could cause the change in supply shown on this graph? Check all that apply.A producer goes out of business.A natural disaster causes production to drop.A new company joins the marketplace.A company begins to produce more goods.A resource needed to produce more of the good has became scarce.

Equilibrium occurs when supply and demand coordinate to

elasticityqualitytimequantity

A chart that shows the connection between consumer demand and price is a

Which is likely to occur if there is a price increase for a good which exhibits elastic demand?

The highest amount a landlord can charge for rent is an example of

Producers hoping to earn profits supply goods and services to

Which is the best title for this diagram?

Which best describes the relationship between consumers and producers?

What does elasticity measure in economics?

increasesdecreasesstays the same

Both a demand curve and a demand schedule show how

A clothing store has ordered a new supply of jeans for the fall season and wants to sell off the remaining items from the previous spring. What action would the store owner most likely take?

A possible result of disequilibrium is

Which statements correctly explain price floors and price ceilings? Choose four answers.Ineffective price floors tend to be too high.Ineffective price ceilings tend to be too low.Price floors help producers by raising prices.Price ceilings help consumers by lowering prices.Effective price floors are set above equilibrium.Effective price ceilings are set below equilibrium.