When there is a shortgage

Prices are forced back up to equilibrium

If price increases and Qs increases and

there will be a movement up along the S curve

sellers will compete for business by lowering their prices

The law of demand states:

That there is an inverse relationship between price and Qd

The law of supply states that:

There is a positive relationship between Price and Qs

Which of the following statements is/are correct?

A non-price determinant will cause a shift of the S curve, A price change will cause a movement along the S curve

Which of the following statements is/are correct?

A non-price determinant will cause a shift of the D curve, A price change will cause a movement along the D curve

If Coke and Pepsi are substitutes, and the price of Pepsi falls

The demand curve for Coke would shift to the left

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Market demand and supply

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To introduce the concepts of demand and supply

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Questions 15

Answers

1
When there is a shortgage
Prices are forced back up to equilibrium
Prices are forced back down to equilibrium
2
If costs of production increase
Supply will increase
Supply will decrease
Qs will decrease
Qs will increase
3
Changes in Quantity Supplied and changes in Supply mean the same thing
False
True
4
If price increases and Qs increases and
there will be a shift of the S curve to the left
there will be a movement up along the S curve
there will be a shift of the S curve to the right
there will be a movement down along the S curve
5
An increase in the birth rate means that
Qd for baby clothes will increase
Qd for baby clothes will decrease
Demand will increase
Demand will decrease
6
When there is a shortgage
Qs is greater than Qd
Qd is greater than Qs
7
A surplus means that
consumers will be happy to pay higher prices
sellers will compete for business by increasing their prices
sellers will compete for business by lowering their prices
8
The law of demand states:
That there is an inverse relationship between price and Qd
That there is an inverse relationship between price and Qs
That there is positive relationship between price and Qs
That there is positive relationship between price and Qd
9
If there is an improvement in technology, the S curve will:
Shift to the right
Shift to the left
10
Equilibrium is a state in the market where
Qd is greater than Qs
Qd is equal to Qs
Qs is greater than Qd
11
A movement along the demand curve is caused by a change in price
True
False
12
The law of supply states that:
There is a negative relationship between Price and Qs
There is a positive relationship between Price and Qs
There is a positive relationship between Price and Qd
There is a positive relationship between Price and Qd
13
Which of the following statements is/are correct?
A non-price determinant will cause a shift of the S curve
A price change will cause a movement along the S curve
When price changes there will be a shift of the S curve
A non-price determinant will cause movement along a S curve
14
Which of the following statements is/are correct?
A non-price determinant will cause a shift of the D curve
A non-price determinant will cause movement along a D curve
A price change will cause a movement along the D curve
When price changes there will be a shift of the D curve
15
If Coke and Pepsi are substitutes, and the price of Pepsi falls
There would be a movement up the demand curve
The demand curve for Coke would shift to the right
The demand curve for Coke would shift to the left
There would be a movement down the demand curve

Market demand and supply Flashcards | StudBud