Supply and Demand Review

Question 1

Which of the following is not a shifter of supply?

Accepted Answer

Income

Question 2

When the quantity supplied is greater than the quantity demanded, we have a ________.

Accepted Answer

Surplus

Question 3

What kind of relationship does the law of supply illustrate?

Accepted Answer

Direct

Question 4

What kind of relationship does the law of demand illustrate?

Accepted Answer

Indirect

Question 5

If a sale is expected to happen at the end of the month, what happens to demand right now?

Accepted Answer

Decreases

Question 6

A price floor is (a) ___________ for a good or service.

Accepted Answer

minimum price

Question 7

Businesses/firms demand productive resources in the Resource/Factor Market

Accepted Answer

True

Question 8

The _____ market is where households purchase the goods and services that a firm produces.

Accepted Answer

product

Question 9

The point at which quantity demanded and quantity supplied are equal is called _________.

Accepted Answer

equilibrium

Question 10

Think back to our friend I.R.D.L. the turtle. What does I.R.D.L.’s name stand for?

Accepted Answer

Increase right, decrease left

Question 11

A price ceiling leads to what economic situation?

Accepted Answer

shortage

Question 12

A price ceiling is (a) ___________ for a good or service.

Accepted Answer

maximum price

Question 13

What happens when Athens gets a new ice cream parlor?

Accepted Answer

Supply increases

Question 14

What happens when the supply curve shifts to the left?

Accepted Answer

Supply decreases

Question 15

The mother of a family receives a raise. What happens to the demand of that family?

Accepted Answer

Increases

Question 16

Which of the following is not a shifter of demand?

Accepted Answer

Price/availability of Inputs

Questions 16