AP Econ: Review of Supply, Demand, & Elasticity

Question 1

What would cause the demand for hamburgers to shift right?

Accepted Answer

Increase in the price of a substitute (like pizza)

Question 2

Which WILL NOT shift the supply curve

Accepted Answer

<p>Income</p>

Question 3

Churros are found to stop cancerous cells. What is the result in the market?

Accepted Answer

P↑Q↑

Question 4

What was the pre-tax price paid by consumers?

Accepted Answer

$3.00

Question 5

During a snow storm Starbucks raised its price for coffee and actually sold more. Why?

Accepted Answer

Demand for coffee increased

Question 6

Which will occur if a legal price floor is placed on a good below its market equilibrium

Accepted Answer

Markets will allocate goods

Question 7

You choose to study because the marginal benefit is greater than the ________ cost.

Accepted Answer

Marginal

Question 8

When a tax is placed on a good, the amount of the tax is

Accepted Answer

paid by both the producers and consumer

Question 9

If hotdogs are an inferior good, an increase in income will result in:

Accepted Answer

A decrease in demand

Question 10

All are examples of price floors except....

Accepted Answer

Rent Control

Question 11

Which of these will have the MOST elastic demand curve?

Accepted Answer

Honda Green cars

Question 12

If there is an increase in demand for a good, what happens to the P and Q of the good?

Accepted Answer

Price increases, Quantity increases

Question 13

The government has imposed a tax of:

Accepted Answer

$1.00

Question 14

If the price of a good decreased 3% but total revenue increases, the good must be

Accepted Answer

Elastic

Question 15

TR increases & P decreases. What happened?

Accepted Answer

Demand is elastic

Question 16

If the cost of wheat increases, what happens to the wheat bread in the market?

Accepted Answer

Supply shifts left

Question 17

The price of a soccer ball is $25, you are willing to pay $33. What is your Consumer Surplus?

Accepted Answer

$8

Question 18

The law of demand states that:

Accepted Answer

As price increases, quantity demanded decreases

Question 19

If the price of DVD falls,

Accepted Answer

ii and iii

Questions 19