Supply & Demand (2)

In the market for new homes, consumer incomes rise

Price increases 5% and revenue falls by 15%, demand must be

If consumer income rises, how would the demand curve change?

When demand is elastic, an increase in price will cause revenue to

In the market for wheat, new technology improves farming and harvesting techniques

At any price above the equilibrium price

When supply shifts to the left, what happens to market price and quantity?

According to the law of demand, as price rises

Which of the following might have caused the demand curve to shift right?

In the market for soda, consumers cut back on drinking sugary drinks

In the market for car tires, the cost producers pay for rubber and steel belting rises

If the demand curve shifts left, what will happen to the market price and quantity?

Would the image above result in a surplus or a shortage?

At a price floor, the market condition that results is called a(n)

When the supply curve shifts right, what happens to market price and quantity?

According to the law of supply, as prices fall

Is the following graph showing a surplus or shortage?

Which of the following is true about the market clearing (equilibrium) price?

What is the best explanation for the change you see in the supply curve?

In the market for chocolate, disease in cocoa trees reduces the size of the harvest