ECO 202 Examination One NVCC 2026

ECO 202 Examination One NVCC 2026 The relationship between quantity supplied and price is ___ and the relationship between quantity demanded and price is ___. - answer-direct, inverse If average income increases, all else equal, then there will be: - answer-a shift of the demand curve A decrease in quantity demand (as distinct from a decrease in demand) is depicted by a: - answer-move from point y to point x A decrease in demand is depicted by a: - answer-shift from D2 to D1 The law of supply indicates that: a. producers will offer more of a product at high prices than they will at low prices. - answer-producers will offer more of a product at high prices than they will at low prices. A fall in the price of milk, used in the production of ice cream will: - answer-increase the supply the ice cream, causing the supply curve of ice cream to shift to the right A market for a product is in equilibrium when: - answer-product price equals demand If the supply and demand curves for a product both decrease, then equilibrium: - answer quantity must decline, but equilibrium price may either rise, fall or remain unchanged The price of *elasticity of demand coefficient* indicates: - answer-buyer responsiveness to price change The basic formula for the price elasticity of demand coefficient is ; - answer-percentage change in quantity demanded/percentage change in price The demand for a product is inelastic with respect to price if: - answer-consumers are largely unresponsive to a per unit price change