Unit Test Answers

The law of supply states that as the price of a good rises, the quantity supplied of that good

The law of demand applies most directly to which group?

Which occurs during market equilibrium? Select two options.Supply and demand meet at a specific price.Supply is slightly greater than demand.Supply and demand meet at a specific quantity.Supply and demand meet at a demand point.Supply and demand meet at a supply point.

Price controls on goods can be set by

The graph shows a supply curve.Which change is illustrated by the shift taking place on this graph?

According to the law of demand, as prices decrease, the quantity demanded

All things being equal, when producers sell goods for a lower price, they make

A factor that most influences changes in consumer demand is

Which factors must a producer consider when deciding what good to supply? Check all that apply.the appeal of the good to family membersthe elasticity of a good being suppliedcompetition within the marketthe ability to produce the good efficientlythe ability to produce a good of low quality

Microeconomics is the study of the economic interactions between

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

Goods that are considered to be needs tend to be

In order to compete successfully, a producer must produce goods that are

Read the scenario below and then answer the question. Sample scenario:Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds. What is the best description of the grass seed that is described in this scenario?

When prices for homes rise, why might construction companies decide to build more homes?

The graph shows excess demand.Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

is a measure of behaviors by producers and consumers in response to changes in price.

Supply and demand coordinate to determine prices by working

Products whose demand rises when another product’s price increases are called

Which best describes what happens to the amount of a good or service that is supplied to consumers?

The lowest amount a manufacturer can pay factory workers is an example of

The study of the interaction between individuals and businesses is known as

The graph shows a point of equilibrium.If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach equilibrium?

The law of supply demonstrates the behaviors of producers when they

The graph shows demand.In order to achieve equilibrium, what else must be included on the graph?