Supply & Demand

Question 1

The price of cream cheese decreases. What happens to bagels?

Accepted Answer

Its demand shifts to the right.

Question 2

Recession hits - many people lose jobs. Consider movie ticket sales- what happens to Pe and Qe?

Accepted Answer

Pe decreases; Qe decreases.

Question 3

2 more doughnut shops open. Which curve is affected, and in which direction does it go?

Accepted Answer

Supply; right

Question 4

The quantity is along the _____.

Accepted Answer

x-axis

Question 5

The total amount of a good/service that is available to consumers describes _____.

Accepted Answer

supply

Question 6

The point at which supply and demand meet is called _____.

Accepted Answer

(market) equilibrium

Question 7

If the supply or demand curve decreases, it shifts to the _____.

Accepted Answer

left

Question 8

Price of cotton increases. Consider the market for t-shirts - what is the change in Pe and Qe?

Accepted Answer

Pe increases and Qe decreases.

Question 9

What are the two factors that tend to cause an inelastic demand?

Accepted Answer

Few substitutes and small cost

Question 10

Which of the following is NOT a determinant of supply?

Accepted Answer

Consumer Income

Question 11

The price is along the _____.

Accepted Answer

y-axis

Question 12

Consumers are given a pay raise. Which curve does this affect, and which direction will it go?

Accepted Answer

Demand; right

Question 13

The government issues an excise tax on indoor tanning services. Which curve will this affect?

Accepted Answer

Supply

Question 14

What are the two factors that tend to cause an elastic demand?

Accepted Answer

Many substitutes and large cost

Question 15

Salt is considered to have an __________ demand.

Accepted Answer

inelastic

Question 16

New cars are considered to have an _____ demand.

Accepted Answer

elastic

Question 17

Which of the following describes the law of demand?

Accepted Answer

As price increases, Qd decreases (and vice versa).

Question 18

What does this graph represent?

Accepted Answer

a surplus

Question 19

Which of the following describes the law of supply?

Accepted Answer

As price increases, Qs increases (and vice versa).

Question 20

Which direction does the supply curve go?

Accepted Answer

Upward

Question 21

Which of the following is NOT a determinant of demand?

Accepted Answer

size of industry

Question 22

Consumers are intrigued by the new iPhone X commercial. What happens to the iPhone 6?

Accepted Answer

Its demand decreases.

Question 23

Government sets a price ceiling below equilibrium to help people save money. What's the result?

Accepted Answer

A shortage

Question 24

The consumer's willingness to buy a good/service at a specific price describes _____.

Accepted Answer

demand

Question 25

Which direction does the demand curve go?

Accepted Answer

Downward

Question 26

The price of Pepsi increases. What happens to Coca-Cola?

Accepted Answer

Its demand shifts to the right.

Question 27

If the supply or demand curve increases, it shifts to the _____.

Accepted Answer

right

Question 28

A headline reads, "Mangoes to decline next month". What is the effect in the here-and-now?

Accepted Answer

The demand for mangoes increases.

Supply & Demand

Questions 28

Supply & Demand

Questions 28