1. The law of demand says (1 point)
the higher the price, the more consumers will buy.
the lower the price, the less consumers will buy.
the lower the price, the more consumers will buy.
the lower the price, the more consumers will substitute.
2. Which of the following describes the substitution effect? (1 point)
As the price of a good falls, people will substitute other products.
As the price of a good rises, people will substitute other products.
As demand rises, people will substitute other products.
As demand falls, people will substitute other products.
3. Which of the following is NOT an example of complements? (1 point)
skis and ski boots
row boat and oars
electric shaver and charging cord
calculator and cell phone
4. If you keep buying despite a price increase, your demand is (1 point)
elastic.
strong.
normal.
inelastic.
5. According to the law of supply, (1 point)
the lower the price, the larger the quantity consumed.
the higher the price, the larger the quantity produced.
if the price of a good rises, some firms will produce less.
if the price of a good falls, new firms may enter the market.


number 1 is lower price more consumer will buy..
number 2 as price rises people will substitute
number 3 calculator and cell phone
number 4 elastic (might wanna check this one)
number 5 the lower the price the larger the quantity consumed