AP Microeconomics: Supply and Demand Concepts Questions with Detailed Verified Answers (100% Correct Answers) /Already Graded A+

AP Microeconomics: Supply and Demand Concepts
Questions with Detailed Verified Answers (100%
Correct Answers) /Already Graded A+



Quiz: Demand

Ans: Demand is downwards sloping.


Quiz: Shift in Demand

Ans: When demand increases or decreases, it moves to the left if it
decreases and to the right if it increases.


Quiz: Price and Quantity Demanded Relationship

Ans: Price and quantity demanded are inversely related.


Quiz: Substitution Effect

Ans: When the price of a good decreases, consumers substitute this
good for goods that are relatively more expensive.


Quiz: Law of Diminishing Marginal Utility

Ans: As consumption increases, the marginal utility for each
additional unit decreases.


Quiz: Income Effect

Ans: When the price of a good falls, consumers experience an
increase in purchasing power.



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, Quiz: Normal Goods

Ans: Buy more when receive higher income (ex. computers).

Quiz: Inferior Goods

Ans: Buy less when receive higher income (ex. cup noodles).


Quiz: Law of Demand

Ans: A decrease in the price of goods causes an increase in the
quantity demanded or an increase in price causes a decrease in the
quantity demanded.


Quiz: Change in Income

Ans: When the good is a normal good, demand increases when
income increases; if the good is inferior, demand decreases.


Quiz: Substitutes

Ans: If the price of good X decreases, the demand for good Y
decreases or if the price of good X increases, the demand for good Y
increases.


Quiz: Complements

Ans: If the price of good X decreases, the demand for good Y
increases.


Quiz: Change in Number of Buyers

Ans: If the number of buyers increases, demand for goods
increases.



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