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Econ 201 (wvu)-Exam 2 Questions and
Correct Answers
The curve that shows the relationship between the price of a good
and the quantity that consumers are willing to purchase at each
price is the Ans: demand curve
A demand curve for concert tickets would show the Ans: number
of tickets that will be purchased at various prices
In economics, the demand for a good refers to the amount of the
good people Ans: are willing to buy at various prices.
The law of demand indicates that Ans: the quantity of a good that
people will buy is inversely related to the price of the good.
How will consumers generally react to an increase in the price of
butter? Ans: They will substitute other goods like margarine for
the more expensive butter.
How will consumers generally react to a decrease in the price of a
product? Ans: They will purchase more of it.
A movement along a demand curve Ans: is the result of a change
in the price of the good.
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The demand curve for a good Ans: indicates the quantities of the
good that people will buy at various prices.
Assume the demand schedule for cookies is downward sloping. If
the price of cookies falls from $1.50 to $1.25 per dozen, Ans: a
larger quantity of cookies will be demanded.
Each point on the demand curve indicates Ans: the quantity
demanded at that price.
If price rises, what happens to the demand for a product? Ans: It
does not change.
If price rises, what happens to the quantity demanded for a
product? Ans: It decreases.
A decrease in the price of a good would Ans: increase the quantity
demanded of the good.
A demand curve shows the relationship between price and
quantity demanded, other things constant. These other things
include which of the following... Ans: consumer preferences
the price of substitute goods
consumer income
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When economists say the demand for a product has decreased,
they mean Ans: the demand curve has shifted to the left.
When economists say the demand for a product has increased,
they mean the Ans: demand curve has shifted to the right.
In which statement(s) is "demand" used correctly?
(I) "An increase in the price of hot dogs will reduce the demand for
hot dogs."(II) "An increase in the price of hot dogs will reduce the
demand for hot dog buns." Ans: in statement II only
In which statement(s) are "demand" and "quantity demanded" used
correctly?
(I). "An increase in the price of coffee will reduce the quantity
demanded of coffee"(II). "An increase in the price of coffee will
reduce the demand for creamer used in coffee" Ans: in both
statements I and II
When economists say the quantity demanded of a product has
increased, they mean the Ans: price of the product has fallen, and
consequently, consumers are buying more of it.
When economists say the quantity demanded of a product has
decreased, they mean the Ans: price of the product has risen, and
consequently, consumers are buying less of it.
© 2025 All rights reserved
Econ 201 (wvu)-Exam 2 Questions and
Correct Answers
The curve that shows the relationship between the price of a good
and the quantity that consumers are willing to purchase at each
price is the Ans: demand curve
A demand curve for concert tickets would show the Ans: number
of tickets that will be purchased at various prices
In economics, the demand for a good refers to the amount of the
good people Ans: are willing to buy at various prices.
The law of demand indicates that Ans: the quantity of a good that
people will buy is inversely related to the price of the good.
How will consumers generally react to an increase in the price of
butter? Ans: They will substitute other goods like margarine for
the more expensive butter.
How will consumers generally react to a decrease in the price of a
product? Ans: They will purchase more of it.
A movement along a demand curve Ans: is the result of a change
in the price of the good.
© 2025 All rights reserved
, 2 | Page
The demand curve for a good Ans: indicates the quantities of the
good that people will buy at various prices.
Assume the demand schedule for cookies is downward sloping. If
the price of cookies falls from $1.50 to $1.25 per dozen, Ans: a
larger quantity of cookies will be demanded.
Each point on the demand curve indicates Ans: the quantity
demanded at that price.
If price rises, what happens to the demand for a product? Ans: It
does not change.
If price rises, what happens to the quantity demanded for a
product? Ans: It decreases.
A decrease in the price of a good would Ans: increase the quantity
demanded of the good.
A demand curve shows the relationship between price and
quantity demanded, other things constant. These other things
include which of the following... Ans: consumer preferences
the price of substitute goods
consumer income
© 2025 All rights reserved
, 3 | Page
When economists say the demand for a product has decreased,
they mean Ans: the demand curve has shifted to the left.
When economists say the demand for a product has increased,
they mean the Ans: demand curve has shifted to the right.
In which statement(s) is "demand" used correctly?
(I) "An increase in the price of hot dogs will reduce the demand for
hot dogs."(II) "An increase in the price of hot dogs will reduce the
demand for hot dog buns." Ans: in statement II only
In which statement(s) are "demand" and "quantity demanded" used
correctly?
(I). "An increase in the price of coffee will reduce the quantity
demanded of coffee"(II). "An increase in the price of coffee will
reduce the demand for creamer used in coffee" Ans: in both
statements I and II
When economists say the quantity demanded of a product has
increased, they mean the Ans: price of the product has fallen, and
consequently, consumers are buying more of it.
When economists say the quantity demanded of a product has
decreased, they mean the Ans: price of the product has risen, and
consequently, consumers are buying less of it.
© 2025 All rights reserved
