An increase in the number of fast-food restaurants:

Increases the supply of fast food meals.

When there is a shortage in the market:

There is upward pressure on the price.

If the cost of computer components falls, then:

The supply curve for computers shifts to the right.

Which of the following will raise the equilibrium price?

An increase in demand with a decrease in supply.

Assume that beef and pork are substitutes. There is a drought in cattle grazing areas:

Demand curve for pork will shift right.

What will happen in the rice market if buyers are expecting higher prices in the near future?

The demand for rice will increase.

Wheat is an input in the production of flour. If the price of wheat increases, we would expect:

The supply of flour to decrease.

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

A change in the price of a turkey.

When the price is higher than the equilibrium price:

Sellers desire to produce and sell more than buyers desire.

A complement is a good:

Used in conjunction with another good.

If income decreases or the price of a complement rises;

The demand good for the normal good shift leftward.

Holding the nonprice determinants of supply constant, a change in price would:

Result in movement along a supply curve.

A higher price for batteries would tend to:

Decrease the demand for flashlights.

People come to expect that the price of gas will rise next week. As a result:

Today's demand for gas increases.

All of the following shift the demand curve for automobiles to the right except:

A brand new automobile dealership opens in the town.

When we say that demand increases, we mean that there is a:

Rightward shift of the demand curve.

When we move up or down a given demand curve:

All nonprice determinants of demand are assumed constant.

The price of a gallon of milk falls. Which of the following is a possible cause?

A discovery that milk causes diabetes.

A surplus occurs when the price is:

Greater than the equilibrium price.

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Market Review

28 termsStudBud Administration158 plays

Review for summative assessment 12th grade AP Economics.

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Questions 28

Answers

1
An increase in the number of fast-food restaurants:
Raises the price of fast food meals.
Increases the supply of fast food meals.
Increases the demand for substitutes for fast food.
Increases the demand for fast food meals.
2
Normal goods are those for which demand decreases as:
The price of a complement falls.
The price of a substitute falls.
The good's own price rises.
Income decreases.
3
When there is a shortage in the market:
There is downward pressure on the price.
The price must be above equilibrium.
There is upward pressure on the price.
The market could still be in equilibrium.
4
If the cost of computer components falls, then:
The supply curve for computers shifts to the left.
The supply curve for computers shifts to the right.
The demand curve for computers shifts to the left.
The demand curve for computers shifts to the right.
5
Suppose there is an increase in input prices. We would expect:
Supply to remain the same.
Supply to increase.
Supply could increase or decrease.
Supply to decrease.
6
Which of the following will raise the equilibrium price?
A decrease in demand with an increase in supply.
An increase in both demand and supply.
A decrease in both demand and supply.
An increase in demand with a decrease in supply.
7
Assume that beef and pork are substitutes. There is a drought in cattle grazing areas:
Demand curve for pork will shift left.
Demand curve for pork will shift right.
Supply curve for pork will shift right.
Supply curve for pork will shift left.
8
What will happen in the rice market if buyers are expecting higher prices in the near future?
The demand for rice will increase.
The demand for rice will decrease.
The demand for rice will be unaffected.
The supply of rice will increase.
9
Wheat is an input in the production of flour. If the price of wheat increases, we would expect:
The demand for flour to decrease.
The supply of flour to be unaffected.
The supply of flour to increase.
The supply of flour to decrease.
10
Which of the following would NOT shift the demand curve for turkey?
An increase in income.
A change in tastes for turkey.
A change in the price of a turkey.
A decrease in the price of ham.
11
When the price is higher than the equilibrium price:
Buyers desire to purcahse more than is produced.
Sellers desire to produce and sell more than buyers desire.
A shortage will exist.
Quantity demanded equals quantity supplied.
12
A complement is a good:
Used in conjunction with another good.
Of lower quality than another good.
Of higher quality than another good.
Used instead of another good.
13
If income decreases or the price of a complement rises;
The demand good for the normal good shift leftward.
The demand curve for the normal good shift rightward.
There is a downward movement along the demand curve.
There is an upward movement of along the demand curve.
14
Holding the nonprice determinants of supply constant, a change in price would:
Result in a shift in demand.
Have no effect on the quantity supplied.
Result in movement along a supply curve.
Result in a change in supply.
15
Which of the following would NOT be a determinant of demand?
The price of related goods.
Price of Inputs.
Tastes and Preferences.
Income
16
A higher price for ski lift tickets would be expected to:
Increase the number of skiers.
Decrease the demand for skis.
Decrease the supply of ski resorts.
Decrease the demand for other winter activities.
17
A higher price for batteries would tend to:
Decrease the demand for electricity.
Increase the demand for electricity.
Decrease the demand for flashlights.
Increase the demand for batteries.
18
People come to expect that the price of gas will rise next week. As a result:
Today's supply of gas increases.
Today's demand for gas increases.
The price of a gallon of gas falls today.
Next week's supply of gas decreases.
19
Most goods:
Are normal goods.
Have vertical supply curves.
Have vertical demand curves.
Are complements for each other.
20
All of the following shift the demand curve for automobiles to the right except:
A local factory gives a big raise to its employees.
A brand new automobile dealership opens in the town.
The price of gasoline falls.
None of the above.
21
When we say that demand increases, we mean that there is a:
Movement to the right along a demand curve.
Movement to the left along a demand curve.
Rightward shift of the demand curve.
Leftward shift of the demand curve.
22
When the price of a good falls, producers reduce the quantity they produce. This illustrates:
The law of demand.
The law of supply.
The nature of an inferior good.
A change in supply.
23
When we move up or down a given demand curve:
Income and price of the good are held constant.
All nonprice determinants of demand are assumed constant.
All determinants of quantity demanded are held constant.
Only price is held constant.
24
Which of the following is Not held constant while moving along a supply curve?
The price of the good itself.
Expected future prices.
The number of sellers.
Prices of resources used in production.
25
The price of a gallon of milk falls. Which of the following is a possible cause?
A decrease in the price of oatmeal, a complement.
An increase in the income of households.
A discovery that milk causes diabetes.
A drought that reduces supply of feed grains fed to cows.
26
What happens to the market for airline travel when the price of traveling by train falls?
The supply curve shifts left.
The demand curve shifts left.
The demand curve shifts right.
The supply curve shifts right.
27
A surplus occurs when the price is:
None of the above.
Greater than the equilibrium price.
Equal to the equilibrium price.
Less than the equilibrium price.
28
If a good is an inferior good, than purchases of that good will decrease when:
Income increases.
The price of a substitute rises.
Population increases.
The demand for it increases.

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