When the supply curve shifts outwards, what is the effect on equilibrium price and quantity?

Price decreases, quantity increases

If the cost of computer components falls, then

the supply curve for computers shifts to the right

If both the demand curve and supply curve move to the left, we can predict:

quantity will fall, but we cannot predict price.

When the government taxes suppliers for their goods, what effect does it have on the market?

The supply curve shifts inwards

Which of the following could remedy a shortage caused by a price ceiling?

Outward shift of the supply curve

All the following shift the demand curve for automobiles to the right except:

a brand new automobile dealership opens in town.

When a price ceiling is imposed above the equilibrium price,

the equilibrium outcome prevails.

If a sin tax is placed on sales of alcohol,

the supply curve shifts to the left.

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AP Macroeconomics "Shifting Demand and Supply"

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Gilbert Ramos 3rd "Shifting Demand and Supply"

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Questions 15

Answers

1
At the equilibrium price, the quantity exchanged in this market will be:
220
250
190
245
2
When the supply curve shifts outwards, what is the effect on equilibrium price and quantity?
Price increases, quantity increases
Price decreases, quantity increases
Price increases, quantity decreases
Price decreases, quantity decreases
3
If the cost of computer components falls, then
the supply curve for computers shifts to the left
the demand curve for computers shifts to the right.
the demand curve for computers shifts to the left.
the supply curve for computers shifts to the right
4
If both the demand curve and supply curve move to the left, we can predict:
quantity will fall, but we cannot predict price.
price will rise, but we cannot predict quantity.
price will fall, but we cannot predict quantity.
quantity will rise, but we cannot predict price.
5
When the government taxes suppliers for their goods, what effect does it have on the market?
The supply curve shifts inwards
The demand curve shifts outwards
The demand curve slopes upwards
The supply curve shifts outwards
6
Which of the following could remedy a shortage caused by a price ceiling?
Inward shift of the supply curve
Outward shift of demand and inward shift of supply
Outward shift of the demand curve
Outward shift of the supply curve
7
All the following shift the demand curve for automobiles to the right except:
the price of gasoline falls.
None of the Above
the local factory gives a big raise to its employees.
a brand new automobile dealership opens in town.
8
Which of the following provides an example of complementary goods?
French fries and ketchup
Beef and pork
Milk and orange juice
Pepsi and Coca-Cola
9
Which diagram best illustrates the effect of a rise in crude oil prices on the gasoline market?
c
d
b
a
10
When a price ceiling is imposed above the equilibrium price,
the equilibrium outcome prevails.
a shortage results.
a surplus results.
there is not enough information to determine the outcome.
11
The price at which there is neither surplus nor shortage is called:
the adjustment price.
the equal price.
the fair price.
the market-clearing price.
12
If a sin tax is placed on sales of alcohol,
the supply curve shifts to the left.
the demand curve shifts to the left.
the supply curve shifts to the right.
the demand curve shifts to the right.
13
Equilibrium price:
Is determined by aggregate supply
Is set by price ceilings
Is market-clearing
Is unaffected by taxes
14
What happens in the market for airline travel when the price of traveling by rail decreases?
The demand curve shifts left
The demand curve shifts right.
The supply curve shifts left
The supply curve shifts right.
15
In a competitive market, marginal revenue is equal to which of the following?
Marginal Utility
Profit
Average Variable Cost
Average Cost

AP Macroeconomics "Shifting Demand and Supply" Flashcards | StudBud