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AP Macro: Supply and Demand 2023 Flashcards | StudBud
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AP Macro: Supply and Demand 2023
AP Macro: Supply and Demand 2023
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Questions
37
Answers
1
When Demand decreases the...
curve shifts right, prices fall
curve shifts left, prices fall
curve shifts left, prices rise
curve shifts right, prices rise
2
A price ceiling is ineffective when:
It is above market equilibrium
It is below market equilibrium
It is equal to or below market equilibrium
It is equal to or above market equilibrium
3
A good is inferior if...
When income decreases, demand increases
When income increases, demand increases
when income increases, demand is unchanged
When income decreases, demand decreases
4
What one factor can cause a change in quantity demanded?
Weather
Price
God
Location
5
Supply or Demand? - Change in consumer preferences?
Demand
Supply
Quantity/Price Issue
6
Due to a technological breakthrough, the price of cheese declines. In the market for pizza...
Demand would increase
Demand would decrease
Supply would decrease
Supply would increase
7
When Supply increases the...
curve shifts right, prices rise
curve shifts left, prices rise
curve shifts right, prices fall
curve shifts left, prices fall
8
The apple market is at Eq. Apple growers discover a new pesticide that increases production.
Ep goes down, Eq goes down
Ep goes down, Eq goes up
Ep goes up, Eq goes down
Ep goes up, Eq goes up
9
Price can cause a change in quantity that was demanded.
False
True
10
_________ is a change in quantity demanded in response to change in price
Supply curve
Shift to supply curve
Movement along the demand curve
Movement along the supply curve
11
A good is "normal" if.....
Demand goes down when income rises
Demand rises when income goes down
When income decreases, demand is unchanged
Demand increases with income
12
A surplus typically indicates that...
the market is in equilibrium
gov't price controls are needed
the price is too high
suppliers cannot meet the demand
13
Steel is used in the production of cars. If the price of steel goes up we can expect...
Price to rise & quantity to fall
Price and quantity to fall
Price to fall & quantity to rise
Price and quantity to rise
14
Where supply and demand curves meet is known as:
connection
coincide
equal
equilibrium
15
What effect would a sale have on the demand for clothing?
Demand would not change
Demand would increase
Demand would decrease
16
Law of demand says that as prices go up, quantity demanded will go ________
Go down
Go up
17
At a price of $2, the market will be
in surplus
at equilibrium
in shortage
18
Which of the following will cause a change in quantity supplied?
all of the above.
A change in input prices.
Technological change.
A change in the market price of the good.
19
Where would you find a
shortage
on the supply and demand graph?
to the left of the equilibrium price
under the equilibrium price
to the right of the equilibrium price
above the equilibrium price
20
An effective price floor is located...
Above equilibrium price
below equilibrium price
At equilibrium quantity
At equilibrium price
21
What does a surplus occur?
When quantity supplied is equal to quantity demanded
When prices are above equilibrium
When prices are below equilibrium
When quantity demand exceeds quantity supplied
22
The Law of Supply represents the interests of
Consumers
Producers
23
What is occurring in the following supply and demand graph?
supply is decreasing
demand is increasing
supply is increasing
demand is decreasing
24
The Law of Supply say that as prices go up, quantity supplied will go __________.
up
down
25
The economy will reach equilibrium at a price of
$4
$1
$2
$3
26
A price floor is a
Fixed price by the Government at a higher level than the equilibrium
Price set by the dominate firm in an industry
A level of income giving a minimal standard of living
Fixed price by the Government at a lower level than the equilibrium
27
The market for jeans is at Eq. If the price of khakis (a substitute) decreases....
Price & quantity go down
Price goes down & quantity goes up
Price & quantity go up
Price goes up & quantity goes down
28
The Law of Demand represents the interests of
Consumers
Producers
29
An effect price floor would result in
A surplus of a good
A shortage of a good
Allocative efficiency
an equilibrium price
30
Supply or Demand? - Change in available technology
Supply
Demand
Quantity/Price Issue
31
A DIRECT relationship between price and quantity is represented by
The Supply Curve
The Production Possibilities Frontier
Equilibrium
The Demand Curve
32
At a price of $5, there market will be
in surplus
at equilibrium
in shortage
33
When Demand increases the...
curve shifts right, prices rise
curve shifts left, prices rise
curve shifts left, prices fall
curve shifts right, prices fall
34
When Supply decreases the...
curve shifts left, prices rise
curve shifts right, prices fall
curve shifts right, prices rise
curve shifts left, prices fall
35
When the price of pears increases, we expect...
Qs of Pears to fall
Demand to fall
Qd of Pears to rise
Qd of Pears to fall
36
If the average income of households rice, what will happen in the market for new cars?
Eq down, Ep up
Ep down, Eq down
Ep up, Eq up
Ep up, Eq down
37
A price ceiling is ineffective when:
It is above market equilibrium
It is below market equilibrium
It is equal to or below market equilibrium
It is equal to or above market equilibrium
