If products C & D are close substitutes, an increase in the $ of C will:

shift the demand curve of D to the right.

At the current $ there is a shortage of a product. We would expect $ to:

increase, QD to decrease, and QS to increase

The truck carrying peaches tips over & spills peaches all over the highway. What is the result?

The supply of peaches goes down and the price of peaches goes up.

OTE, which might shift the demand curve for gasoline to the left?

the development of a low-cost electric automobile

When oil prices fall, what happens to supply of plastics?

Supply shifts to the right as price of inputs increases.

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AP Econ: Demand & Supply

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Questions 10

Answers

1
Which of the following will NOT cause the demand for product J to change?
a change in the price of close-sub product K
a change in the price of J
a change in consumer tastes
an increase in consumer incomes
2
If products C & D are close substitutes, an increase in the $ of C will:
shift the demand curve of C to the right
shift the demand curves of both to the right
shift the demand curve of D to the right.
tend to cause the price of D to fall
3
At the current $ there is a shortage of a product. We would expect $ to:
Increase, QD to increase, and QS to decrease
decrease, QD to increase, and QS to decrease
increase, QD to decrease, and QS to increase
increase, QD to increase, and QS to increase.
4
If a product is in surplus, its price:
is below equilibrium level
is above the equilibrium level
will rise in the near future
is in equilibrium
5
The truck carrying peaches tips over & spills peaches all over the highway. What is the result?
The supply of peaches goes down and the price of peaches goes down.
The supply of peaches goes down and the price of peaches goes up.
The supply of peaches goes down and the price of peaches goes down.
The demand for peaches goes up and the price of peaches goes up.
6
OTE, which might shift the demand curve for gasoline to the left?
a large decline in the price of automobiles
the development of a low-cost electric automobile
the discovery of vast new oil reserves in Montana
an increase in the price of train & air transportation.
7
A ↓ in tech, a ↓ in input prices, and a ↓ in the # of sellers in the marketplace will lead to which of the following
An increase in supply
A decrease in supply
An increase in the quantity supplied
A decrease in the quantity supplied
8
When product prices change, consumers are inclined to purchase larger amts of cheaper products
the substitution effect
the income effect
the cost effect
the trump effect
9
When oil prices fall, what happens to supply of plastics?
Supply shifts as the number of suppliers of plastic declines.
Supply shifts as consumers demand more plastic products.
Supply shifts left as more drivers demand gasoline.
Supply shifts to the right as price of inputs increases.
10
Which will cause a ↓ in market equilibrium price & an ↑ in equilibrium quantity?
an increase in supply
an increase in demand.
a decrease in supply
a decrease in demand

AP Econ: Demand & Supply Flashcards | StudBud