Title: Forces Behind Supply and Demand
Course: Demo 1

Q: The law of demand says that, all else remaining constant:
- market equilibrium will eventually result.
- that an increase in demand will cause market price to fall.
- there is an inverse relationship between price and quantity demanded.
A: there is an inverse relationship between price and quantity demanded.

Q: Wanda’s Widgets is willing to produce 100,000 widgets if they will sell for $10 each but is only willing to produce 10,000 widgets if they will sell for $5 each. If all other variables are held constant, this is an example of:
- the law of demand at work.
- equilibrium pricing.
- the law of supply at work.
A: the law of supply at work.

Q: According to the law of demand, assuming all other variables are held constant, ________.
- as the price of bread increases, the quantity of bread demanded will increase.
- as the demand for bread increases, the price of bread will also increase.
- as the price of bread increases, the quantity of bread demanded will decrease.
A: as the price of bread increases, the quantity of bread demanded will decrease.

Q: Complete the following sentence. If people expect that the price of electronics will increase soon, that belief may result in a(n):
- decrease in the demand for electronics today.
- decrease in the price of electronics today.
- increase in the demand for electronics today.
A: increase in the demand for electronics today.

Q: As the price increases:
- suppliers will produce more.
- buyers will purchase less of the good.
- buyers will demand more of the good to avoid paying even higher prices in the future.
A: suppliers will produce more.; buyers will purchase less of the good.

Q: All else remaining constant, when the price in a market rises:
- demand shifts.
- the quantity demanded rises.
- the quantity supplied falls.
- the quantity demanded falls.
A: the quantity demanded falls.

Q: The downward slope of a demand curve illustrates the pattern that as ________ rises, ________ decreases.
- quantity demanded : price
- quantity supplied : quantity demanded
- price : quantity demanded
A: price : quantity demanded

Q: A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and ________, shown on the horizontal axis.
- supply
- quantity demanded
- quantity supplied
A: quantity supplied

Q: Which of the following events will increase supply in the market for natural gas?
- The price of natural gas rises.
- Demand for natural gas increases.
- A new technique for inexpensively accessing new reserves is discovered.
A: A new technique for inexpensively accessing new reserves is discovered.

Q: When an economist is interested in examining the relationship between the price and quantity demanded at various prices, which of the following will provide them with a graphical representation?
- supply schedule
- demand schedule
- demand curve
A: demand curve

Q: Almost all supply curves will share which of the following characteristics?
- The curve will slope down from left to right.
- The curve will slope up from right to left.
- The curve will slope up from left to right.
A: The curve will slope up from left to right.