01 Feb What is enacted when

KNOWLEDGE CHECK 2

Question 1

Which of the following would reduce the supply of microcomputers?

Question 2

A supply curve is a graphical illustration of the relationship between price, shown on the vertical axis, and ____________, shown on the horizontal axis.

Question 3

The ____________ is the quantity where quantity demanded and quantity supplied are equal at a certain price.

Question 4

Which of the following is the only price where quantity demanded is equal to quantity supplied?

Question 5

If a firm faces ________________________, while the prices for the output the firm produces remain unchanged, a firm’s profits will increase.

Question 6

If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. What is this known as?

Question 7

What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling?

Question 8

The nature of demand indicates that as the price of a good increases:

Question 9

A demand curve shows the relationship between price and _________________ on a graph.

Question 10

What is the term economists use to refer to the relationship that a higher price leads to a lower quantity demanded?