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Supply and Demand Test Review
Supply and Demand Test Review
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1
What label do you put on the x axis of a supply/demand curve (the horizontal axis or left/right axis)
Price
Demand
Supply
Quantity
2
When the supply curve shifts, it changes the ____ and _____ of the equilibrium
price, supply
quantity, demand
price, quantity supplied
demand, supply
3
A decrease in demand is shown graphically by
A movement up
A D2 shift to the right
A movement down
A D2 shift to the left
4
Price changes shift the demand curve
False
True
5
A supply curve is
always vertical
U shaped
positive sloping (upwards from bottom left to top right)
negative sloping (downwards from top left to bottom right)
6
Where supply and demand curves meet is known as:
equal
coincide
equilibrium
connection
7
A chart showing the quantities demanded for a good at various prices is a
demand schedule
factors affecting demand
demand curve
law of demand
8
Who determines demand?
Buyers/Consumers
Sellers
9
Changes in price shift the supply curve, no matter what they are
False
True
10
Which of the following is not a factor affecting demand?
Number of producers (competition)
Tastes and preferences
Price of complements
Income
11
A shift in the supply curve to the rights means:
All of the above
the price will also increase
the amount producers wish to sell at every price decreases
the amount producers wish to sell at every price is the same
12
Which of these factors may cause a shift in the demand curve?
A change in tastes and preferences
A change in the size of the population
All of the above
Availability of substitute items
13
What is the equilibrium price?
$40.00
$60.00
$50.00
$70.00
14
What does equilibrium mean?
A point where P=QS
A point where QS<QD
A point where QS>QD
A point where QS=QD
15
If the demand curve shifts to the left there has been an increase in demand.
False
True
16
What happens when the supply is high and the demand is low?
The Prices tend to increase
Prices go crazy and have a party
The Prices tend to fall
You have the equilibrium
17
At price of $2 what is the quantity demanded?
2 units
4 units
8 units
5 units
18
Price floors usually create a ________ of a good or service.
shortage
surplus
19
A shift in a demand curve is caused by factors that affects your willingness to purchase. (CTIPS)
True
False
20
elasticity of demand:
Both are true
How far a person can make their money go
How quickly demand changes in response to changes in price
The more candy costs, the more you will buy
21
Price floors and price ceilings are both examples of
I have no clue
deregulation
price controls
remodeling projects
22
Price has increased causing the supply curve to shift to the left.
False
True
23
Locate the equilibrium
Where all the lines meet in the middle
The supply line
The demand line
The quantity
24
Quantity supplied means:
The amount that the producer is willing to supply at a certain price
The price that consumers want to buy as
The amount consumers are buying
The price that sellers want to sell as
25
The law of demand states:
As prices increase, supply increases
As prices increase, demand increases
As prices increase, demand falls
As prices increase, supply falls
26
Demand is the quantity of a good or service that buyers...
will purchase at a certain price
will purchase during a special time-period
no clue...
will purchase during no specific time-period
27
When supply is greater than demand, a _________ will result
equilibrium
shortage
balance
surplus
28
A shift in the supply curve to the left means:
quantity supplied will decrease
quantity producers offer at every price will be high.
none of the above
quantity producers offer at every price stays the same.
29
A graphical representation of a supply schedule is
law of supply
law of demand
supply curve
demand curve
30
The equilibrium price and quantity would be...
P= $5, Q=5
P=$5, Q=6
P = $5, Q= 4
P= $6, Q= 5
31
elasticity of supply:
a measure of the way quantity supplied reacts to a change in price.
government payment that supports a business or market
amount a supplier is willing and able to supply at a certain price
chart that lists how much of a good a supplier will offer at dif prices
32
True of Inelastic Demand:
goods or services that people need every day
Consumers must buy an item even though the price goes up
demand does not rise even if the price drops
quantity demanded doesn't change as much as the price does
33
Equilibrium price is where the demand of a product/service is equal to the supply of a product/service.
False
True
34
Consumer Tastes has a massive effect on product demand
True
False
35
At price of $2 what is the quantity supplied?
4 units
2 units
7 units
5 units
36
A graphical representation of a demand schedule is
law of demand
supply curve
demand curve
law of supply
37
What does a demand curve show
Amount buyers negotiate on
The products
amount the consumers are willing to purchase at a certain price /
Nothing
38
What happens to the supply curve when the number of sellers decrease?
It shifts left
It shifts right
No change
No change
39
A demand curve is:
a straight vertical line
negative sloping (downwards from top left to bottom right)
a curved horizontal line
positive sloping (upwards from bottom left to top right)
40
Which of the following is not a factor affecting supply ?
Government actions
Consumer income
Technology
Changing production costs
41
What happens when the Supply is low and the demand is high?
The price decreases
The price increaces
42
Which of the following is NOT a factor that affects supply
Changes in population
Changes in technology
Changes in production costs
Price of the good
43
Which of the following is NOT a factor that affects demand
Changes in Income
Complimentary Goods
Changes in Technology
Substitute Goods
44
The amount of goods/services consumers are willing to buy at various prices over a period of time is:
Equilibrium
Elasticity
Quantity Demanded
Quantity Supplied
45
A table showing the quantities supplied of a good at various prices is a
supply schedule
supply curve
law of supply
factors affecting supply
46
What label do you put on the y axis of a supply/demand curve (the vertcial axis or up/down axis)
Demand
Quantity
Price
Supply
47
Inelastic demand is:
fluctuating.
limited to luxury goods.
variable.
unaffected by price changes.
48
What is the equilibrium quantity?
7 units
2 units
4 units
5 units
49
When demand is greater than supply, a _________ will result
equilibrium
surplus
shortage
balance
50
what would happen on a supply and demand curve if a tax was put on materials?
the demand curve would shift to the left
the supply curve would shift to the left
the supply curve would shift to the right
the demand curve would shift to the right
51
Market Equilibrium is when the demand curve?
Is at its highest value
Meets the Supply Curve
When there is a steady supply
Is at its lowest value
52
A leftward shift of supply (S2) will:
decrease demand.
increase demand.
increase equilibrium quantity.
decrease equilibrium quantity.
53
Is the picture a demand curve or demand schedule?
Demand Schedule
Demand Curve
54
What Causes a shift in the Demand
Consumer tastes
All of the above
income
Changes in population
55
Which impacts elasticity of supply the most
capital
farming
employees
time
56
What happens to a supply curve when the number of sellers increase
It shifts right
It shifts left
It shifts upward
It shifts downward
57
The quantity of goods/services available to consumers to buy at various prices over a period of time is:
Quantity Supplied
Quantity Demanded
Inelastic
Price Floor
58
At what price will 7 units be supplied to the market?
$5
$4
$7
$2
59
The law of supply states
As prices increase, supply increases
As prices increase, demand falls
As prices increase, supply falls
As prices increase, demand increases
60
When Creating a supply and demand curve how do you label each axis?
X=Quantity Y= number of buyers
X=Price Y= number of sellers
X=Quantity Y=Price
X= number of buyers Y=number of sellers
