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Demand & Supply Test 1
Demand & Supply Test 1
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Practice with identifying when supply and demand move and what moves it. #economics #supplyanddemand
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1
The Chicago Cubs won the 2016 World Series. Their ticket prices will most likely
Go DOWN in price
Stay the SAME price
Go UP in price
2
What happens when the quantity demanded out weighs the quantity supplied?
Surplus
Shortage
Extra
Can't Happen
3
EPA imposes stricter guidelines on Pesticide Use. PRODUCT: Grapes
Price DECREASES, Supply INCREASES
Prices INCREASE, Supply INCREASES
Price DECREASES, Supply INCREASES
Price INCREASES, Supply DECREASES
4
Rationing is a common form of distribution in a
centrally-planned economy.
market based on competition.
free market system
priced based system
5
Whenever the market is in disequilibrium and prices are flexible, market forces will
not affect the economy
prolong a shortage of goods and services.
keep the market in disequilibrium.
push the market toward equilibrium
6
The minimum wage is an example of
the action of market forces
an equilibrium
a price floor
a price ceiling
7
If the population of an economy increases, what increases?
Supply
Stability
Output
Demand
8
When the actual price in a market is below the equilibrium price, you have
a price ceiling
excess supply
a price floor
equilibrium
9
What product is the LEAST Elastic? (or most inelastic?)
American Cheese
a t-shirt
milk
Eminem concert tickets
10
Hollywood Studios Orlando opens Star Wars Theme World. PRODUCT: Hollywood Studios Tickets
Demand INCREASES
Demand DECREASES
Supply INCREASES
Quantity Supplied INCREASES
11
How are goods and resources distributed in a free market economy?
through disequilibrium
through prices
through rationing
through government action
12
Dr. Dre convicted of child abuse. PRODUCT: Beats by Dr. Dre
Demand INCREASES
Demand DECREASES
Supply INCREASES
Supply DECREASES
13
What determines a products elasticity?
price
demand
supply
substitutes
14
What product is the most elastic?
hot dog
new car
fashion jeans
monthly cell phone bill
15
What is it called when the quantity supplied equals the quantity demanded?
Common point
Not possible
Equilibrium point
Intersection point
16
states that the more you have something that the satisfaction tends to decline.
Law of Supply
Law of Diminishing Returns
Law of Demand
Law of Diminishing Utility
17
Medical Advance Makes Kidney Transplants Compatable For All. PRODUCT: Kidney Transplants
Demand INCREASES
Supply eventualy INCREASES
Price & Quantity INCREASES
All of these will happen
18
If total demand decreases which way does the demand curve shift?
Left
Right
Down
Up
19
What happens to demand of a product when the popularity increases?
Increases
Decreases
there is no demand for popular goods
Stays the same
20
What would happen if there is more supply than demand?
Surplus
People want more
Shortage
Businesses buy more
21
Gamestop Announces That Next Year Prices Will Be RAISED 10%. PRODUCT: Video Games
Demand will RISE
Demand will DECREASE
Supply wil RISE
Quantity Supplied will RISE
22
NFL Raises ticket prices for 2017. PRODUCT: Bear Football Tickets
Quantity of Demand Decreases
Supply Decreases
Demand Decreases
Supply Increases
23
Low interest in Amazon's new phone. PRODUCT: Amazon Phone
SHORTAGE
SURPLUS
DECREASE in Demand
INCREASE in Demand
24
The pleasure, usefulness or satisfaction of a good.
Convenience
Utility
Markets working
Consumerism
25
In any market, quantities supplied and quantities demanded will
be equal at several different prices and quantities.
be equal at only one price and quantity.
never be equal
always be equal
26
States that the quantity demanded and price move in opposite directions.
Law of Diminishing Returns
Law of Demand
Market
Law of Supply
27
Which would a business most likely make the most profit off of?
Mansions
Phones
Paper clips
Butterfingers
28
Netflix Removes Doctor Who from Streaming Catalog. PRODUCT: Doctor Who DVD's
Supply INCREASES
Demand INCREASES
Demand DECREASES
Supply DECREASES
29
What are the two types of related goods?
Substitute and Teacher
Complementary and Substitute
Complementary and Inverse
Left and Right
30
A Mercedes Benz S Class is an example of...
A Complimentary Good
An Expensive Good
A Luxury Good
An Inferior Good
31
What is the slope of the supply curve?
Horizontal
Vertical
Postive
Negative
32
Which statement explains why prices rise in a market?
there is excess demand in the market
new producers enter the market
producers produce a quantity greater than consumers demand
Consumers buy much less of a good than they have previously
33
Cocoa Bean Shortage. PRODUCT: Swiss Miss Hot Chocolate
Supply goes UP, Prices go DOWN
Supply goes DOWN, Price goes UP
Supply goes UP, Prices go UP
Supply goes UP, Prices go DOWN
34
What business would have more Elastic supply
Aircraft Manufacturing
Hair Cutting
Apple Farming
35
If the amount of income increases which way does the Demand Curve shift?
The Demand Curve moves Left
The Demand Curve moves Right
The Demand Curve Doesn't Move
36
Generic Cereal is an example of
A Luxury Good
A Substitute Good
Complementary Good
An Inferior Good
37
What can cause a Shift in Demand.....
Consumer Tastes
All of These
Consumer Expectations
Population
38
Which of the following is an example of a shortage?
Manufacturers make too many units of a popular new toy
Consumers cannot find enough of a popular new toy in stores
Stores can't sell all the new popular toys they have on hand
Consumers cannot afford to buy a new popular toy
39
What product would be more INELASTIC to price changes......
Tostitos Brand Corn Chips
A Vacation at a Luxury Resort
A Landrover SUV
Milk
40
When the number of sellers increases in an economy what increases
Competition
Supply
All of the above
Not the prices
41
If the equilibrium wage for low-skill labor is $5.00 hour, and the minimum wage is set at $7.25
employers ready to Hire more workers
an excess Demand for labor
a market in Equilibrium.
an excess Supply of labor
42
Which curve does expectations impact?
Both
Neither
Supply
Demand
43
Which of the following is NOT an advantage of a price-based system?
prices act as signals for buyers and sellers
prices act as an incentive for buyers and sellers
prices can easily be set by the government
prices are flexible
44
Average Wages Decline for Workers. PRODUCT: Allergy Medicine
Demand Increases
Supply Stays the Same
Demand Stays the Same
Supply Increases
