Which of the following would NOT shift the demand curve for beef?

a reduction in the price of cattle feed

What is an equilibrium?

the point of the balance between the price and quantity

Which of the following is the best example of the law of supply

Producers increase their supply of generators during hurricane season

When the supply curve shifts to the left or the right-

there is a change in the quantity supplied

The law of demand is best illustrated when-

You increase your consumption of cookies when the price drops

how much people are willing and able to buy a good

Some prescription drugs are said to be inelastic beacuse

they are necessary and without substitutes

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Supply and Demand

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Questions 26

Answers

1
Price changes shift the demand curve
False
True
2
If the price of a good increases, what will happen to the demand curve for a cheaper, substitute good?
shift to the left
remain unchanged
shift to the right
Shift upward
3
Which of the following would NOT shift the demand curve for beef?
widely publicized study which indicates that beef increases heart disease
a reduction in the price of cattle feed
an effective advertising campaign by pork producers
a change in income of beef consumers
4
When moving along a demand curve, the only factor taken into account is-
consumer tastes
price
cost of substitutes
production time
5
Price and Demand have what type of relationship?
direct
indirect
inverse
converse
6
An example of inelastic demand is
computer
Gasoline
television
chocolate covered doughnuts
7
A fixed cost is one that-
varies depending on demand
is the most expensive
changes weekly
stays the same
8
What is an equilibrium?
the point of the balance between the price and quantity
steady, long-term increase in real GDP
when quantity demanded is more than quantity supplied
wage rate that produces the excess supply
9
What happens when the Supply is low and the demand is high?
The price decreases
The price increaces
10
Which of the following is the best example of the law of supply
the price of cake rises because the cost of flour decreases
there is a shortage of beef due to mad cow disease
Producers increase their supply of generators during hurricane season
the price of soda drops so consumers buy more
11
When the supply curve shifts to the left or the right-
there are negative marginal returns
the item is more elastic
there is a change in the quantity supplied
the price has increased
12
The law of demand is best illustrated when-
gas prices go up and people buy just as much as before
You decrease the amount of pizza you buy when the price drops
You increase your consumption of cookies when the price drops
Parents buy the newest toys no matter the price
13
What is demand?
relationship between people and their money
when a karen demands to see the manager
how many people want to buy a good
how much people are willing and able to buy a good
14
Which economic term best explains why businesses don't always make more money by charging more for their product?
supply
consumer tastes
fixed costs
elasticity
15
How does an excise tax affect supply?
it always causes a supply curve to flatten out
it does not affect supply at all
it causes a decrease in supply
it causes an increase in supply
16
Some prescription drugs are said to be inelastic beacuse
they are luxury goods
their demand decreases with price increases
they are necessary and without substitutes
they are expensive
17
Price of chinese food is getting too high. I decided instead to order pizza once a week. This is an example of:
the income effect
the substitution effect
elasticity of supply
the elasticity effect
18
Which of the following affect the demand elasticity of a good?
all of the above
availability of substitutes
necessities v. luxuries
relative importance
19
If the % change in quantity demanded changes less than the % change in price the demand is
elastic
unitary
inelastic
all of the above
20
When supply increases, demand also increases
True
False
21
Equilibrium price is where the demand of a product/service is equal to the supply of a product/service.
True
False
22
Goods that are bought and used together are called-
inferior
complements
substitutes
normal
23
If two goods are said to be complements, what will happen to their demand if the price of one rises?
demand for one will drop, but increase for the other
demand for both will drop
demand will remain unchanged
demand for both will increase
24
As price increases does demand go up or down?
Down
Up
None
sideways
25
The slope of the demand curve is...
Upward to the right
Upward to the left
Downward to the right
Downward to the left
26
What happens when the supply is high and the demand is low?
The Prices tend to fall
You have the equlibram
The Prices tend to increase
Prices go crazy and have a party

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