Which of the following is generally true after a shift in supply or demand?

equilibrium is generally restored

Government regulation of a factory with more pollution checks would affect supply by

decrease supply w/ higher production cost

How would demand be impacted if a global pandemic drastically hurt movie theaters?

income effect lower demand for movie tickets

How does a government subsidy for rice farmers affect the market for rice?

increase supply by reducing farmers' costs

What would likely happen to oranges as a result of a severe freeze?

disequilibrium due to decreased supply

If the price of toothpaste increased, what would happen to the elasticity of toothpaste

inelastic b/c it's a low cost necessity

If supply were to suddenly decrease, what would be the result?

increased price, decreased quantity

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Demand & Supply

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Demand & Supply Review

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Questions 15

Answers

1
Which of the following is generally true after a shift in supply or demand?
demand falls as prices rise
equilibrium is generally restored
supply rises with demand
equilibrium moves down
2
Government regulation of a factory with more pollution checks would affect supply by
decrease supply w/ higher production cost
increased supply w/ more efficeincy
increased supply w/ subsidy cost
decrease supply w/ higher transportation cost
3
Which of these would happen due to a successful ad campaign for iPhone 8?
demand curve shifts left
demand curve shifts right
supply curve shifts right
supply curve shifts left
4
How would demand be impacted if a global pandemic drastically hurt movie theaters?
market equilibrium, stable prices for all goods
income effect lower demand for movie tickets
law of demand, lower prices for all goods
supply shock, higher consumption of movie tickets
5
______________ refers to the change in output by hiring one additional worker.
marginal product of labor
law of increasing costs
diminishing marginal returns
increasing marginal returns
6
How does a government subsidy for rice farmers affect the market for rice?
decrease supply by encouraging farmers to grow another crop
increase supply by increasing demand for rice
decrease supply by increasing farmers' production costs
increase supply by reducing farmers' costs
7
What would likely happen to oranges as a result of a severe freeze?
disequilibrium due to decreased supply
supply curve would shift right
more sellers enter the market
consumers would demand more fruit
8
A big series of outdoor concerts is set for fall. Why will stores increase the supply of goods?
response to supply shock
expected surplus
response to falling equilibrium price
response to profit incentive
9
If the price of toothpaste increased, what would happen to the elasticity of toothpaste
inelastic b/c it's a large portion of a budget
inelastic b/c it's a low cost necessity
Inelastic b/c it's a luxury
elastic b/c there are no substitutes
10
For most products and services, increased prices results in
demand for more products
increased demand for complements
reduced demand for substitutes
demand for fewer products
11
Which of the following would be considered a complement to salsa in the context of demand?
peanuts
tortilla chips
bolts
screw drivers
12
How are price ceilings and price floors similar
both are government price supports
both involve a maximum price
both show input changes in demand
both show disequilibrium
13
Which of the following is generally true after an increase in demand?
price and quantity decrease
price decreases quantity increases
price and quantity increases
price increases, quantity decreases
14
An increase in the price of flashlights results in a decrease in the demand for batteries. They
are demand elastic
are substitutes
are complements
are inelastic
15
If supply were to suddenly decrease, what would be the result?
decreased price, increased quantity
increased price and quantity
decreased price and quantity
increased price, decreased quantity

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