Supply and Demand I

The various quantities of a good that consumers are willing to purchase at each possible price is the
1. demand
2. quanitity demanded
3. supply
4. quantity supplies
5. equilibrium
Which of the following helps to establish the slope of the demand curve?
1. The sustitution effect
2. The income effect
3. Diminishing marginal utility
4. All of the above
5. None of the above
A rise in the price of corn, a substitution for potatoes, will
1. increase the demand for potatoes.
2. increase the demand for corn
3. decrease the demand for potatoes.
4. decrease the demand for corn.
5. decrease the price of potatoes.
A good is classified as inferior if the demand for it increases when
1. its price increases
2. its price decreases
3. consumers' incomes increase
4. consumers' incomes decrease
5. the price of a substitute increases
According to the graph above, which demand curve is most elastic?
1. Demand1
2. Demand2
3. Demand3
4. All three have the same elasticity
5. Elasticity cannot be determined with information given.
If, relative to other goods, the marginal utility of a good declines modestly as additional units of the good are consumed, we would then expect to see this reflected in
1. lower demand for the good
2. higher demand for the good
3. a more elastic demand for the good
4. a more inelastic demand for the good
5. a higher equilibrium price for the good
Which of the following would increase the demand for a normal good?
1. A decrease in the cost of production
2. A decrease in the price of the good
3. An increase in the price of the good
4. An increase in consumer income
5. A decrease in consumer income
Which of the following is most likely to increase the demand for economics teachers?
1. An increase in the wages of economics teachers
2. A decrease in the wages of economics teachers
3. An increase in the supply of economics techers
4. An increase in the enrollment in economics classes
5. A decrease in the enrollment in economics classes

Supply and Demand I

Quiz