The Big One: Supply and Demand

Question 1

What happens in the tomato market if a salmonella outbreak is attributed to tainted tomatoes?

Accepted Answer

demand decreases and price decreases

Question 2

A sharp rise in the price of gas leads many commuters to join carpools

Accepted Answer

caused by a change in the quantity demanded

Question 3

A technological advance in textbook production will lead to which of the following

Accepted Answer

change in supply

Question 4

A store owner finds that customers are willing to pay more for umbrellas on rainy days.

Accepted Answer

change in demand (shift)

Question 5

People buy more long-stem roses the week of Valentines Day, even though prices are higher

Accepted Answer

caused by a change in demand (shift)

Question 6

When XYZ telecom offers lower rates on weekends, its volume of weekend calling increases.

Accepted Answer

change in quantity demanded

Questions 6