The law of demand states that

as price increase quantity demanded will decrease

A change in the quantity demanded is different than a change in demand because

change in Qd is caused by a change in the determinants

When the quantity demanded increases, it means that

ppl will buy more bc the price is lower

Which of the following will cause a shift in the supply curve for corn?

There was a severe drought, which affected many farmers.

An increase in demand will cause

THE DEMAND CURVE TO SHIFT RIGHT

if a product has inelastic demand, how will changes in price affect demand

it will have little to no effect

Which of the following will NOT cause a shift in the demand cure for new cars?

A change in the price of new cars

The price of cocoa beans used in the production of chocolate has fallen. This will lead to

an increase in the supply of chocolate.

All of the following are reasons why economists think price controls are inefficient EXCEPT

they have environmental benefits.

a decrease in supply will cause

will cause the supply curve to shift left

When the quantity supplied increases, it means that

larger amount of goods are supplied becaus the prc is higher

An excess amount of bananas in a competitive market would indicate that

price is currently above the equilibrium point.

When supply decreases, it means that

producers will now supply less at every price.

When demand decreases, it means that

the entire demand curve has decreased , shifted left

governments sometimes set prices to

protect consumers and producers from dramatic price swings

The law of supply states that

as price increases,quantity suppled will increase

If both demand and supply increase in the market for smartphones,

the change in P is unknown but the Q will certainly increase

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Duplicate of Unit 2 Review

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Economics Unit 2: Supply and Demand

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Questions 30

Answers

1
government regulation sets a minimum price for a good or service is called a
price ceiling
equlibrium
price floor
2
Price ceiling usually create a _________: while price floors usually create a _________.
shortage; quota.
surplus; shortage.
quota; surplus.
shortage; surplus.
3
The law of demand states that
price has no effect on the amount consumers demand.
as price increase quantity demanded will decrease
as price decreases, consumers will demand less of a product.
as price increases, consumers will demand more of a product.
4
A change in the quantity demanded is different than a change in demand because
only equilibrium price changes when there is a change in QD
a change in Qd is caused by a change in price
only equilibrium quantity changes when there is change in QD
change in Qd is caused by a change in the determinants
5
When the quantity demanded increases, it means that
the entire demand curve has decreased in value.
the entire demand curve has increased in value.
ppl will buy more bc the price is lower
ppl will buy more bc price is higher
6
Which of the following will cause a shift in the supply curve for corn?
A new study shows the health benefits of consuming more corn
There was a severe drought, which affected many farmers.
Consumer income increase.
Thousands of tobacco farmers switch production to cotton.
7
An increase in demand will cause
THE DEMAND CURVE TO SHIFT RIGHT
THE DEMAND CURVE TO SHIFT LEFT
A MOVEMENT ALONG THE DEMAND CURVE
price to decrease and quantity to decrease
8
if a product has inelastic demand, how will changes in price affect demand
it will have little to no effect
it will cause demand to rise markedly
it will cause demand to fall markedly
it will cause demand to flucucate
9
Which way does a supply curve shift to illustrate a decrease in supply?
Up
Left
Down
Right
10
All of the following groups of people benefit from a price floor in the milk market EXCEPT
dairy farmers.
milk bottling companies.
cheese manufacturers.
consumers of milk.
11
when a product is a necessity it will tend to have
inelastic demand
elastic demand
fluctuating demand
12
Which of the following will NOT cause a shift in the demand cure for new cars?
An extensive marketing campaign by leading car manufacturers
A change in the price of new cars
Consumers expect the economy to shrink in the near future
A change in consumer income
13
All of the following goods are likely considered substitute goods for orange juice EXCEPT
grape juice
pineapple juice
apple juice
hot chocolate
14
When the price of Good X decreases, the demand for Good Y increases. Good X and Good Y are
complementary goods.
unrelated goods.
inferior goods.
substitute goods.
15
All of the following scenarios will cause supply to increase EXCEPT if
technology improves.
the costs of production decrease.
the opportunities in different markets are bad.
sellers exit the market.
16
The price of cocoa beans used in the production of chocolate has fallen. This will lead to
a decrease in the supply of chocolate.
an increase in the quantity supplied of chocolate.
an increase in the supply of chocolate.
a decrease in the quantity supplied of chocolate.
17
All of the following goods are likely considered complementary goods for computers EXCEPT
printers
keyboards
gasoline
software, CDs, and DVDs
18
All of the following are reasons why economists think price controls are inefficient EXCEPT
they promote illegal activity.
they have environmental benefits.
resources are wasted.
resources are not allocated efficiently.
19
a decrease in supply will cause
price to decrease and quantity to decrease.
will cause the supply curve to shift right
will cause a movement along the supply curve
will cause the supply curve to shift left
20
When the quantity supplied increases, it means that
the entire supply cure has increased in value.
the entire supply curve has decreased in value.
larger amount of goods are supplied becaus the prc is higher
larger amount of goods are supplied because the prc is lower
21
economics is the__________ science
esoteric
dismal
sad
happy
22
An excess amount of bananas in a competitive market would indicate that
price is currently above the equilibrium point.
the market will be unable to find equilibrium P and Q.
price is below equilibrium
23
consumers are able to buy more at lower prices than higher prices because price decrease like
changes in elasticity
changes in income
changes in market size
changes in substitution
24
When supply decreases, it means that
smaller amount of goods are supplied becausthe prc is higher
smaller amount of goods are supplied becaus the prc is lower
producers are willing to supply more at every price.
producers will now supply less at every price.
25
the degree to which changes in price affect Quanitity spplied is called
fluctuating supply
elasticity of supply
inelasticity of supply
26
When demand decreases, it means that
smaller amount of good are dmd because the prc is now higher
smaller amount of goods are dmd because the prc is now lower
the entire demand curve has increased, shifted right
the entire demand curve has decreased , shifted left
27
governments sometimes set prices to
ensure there is an adequate supply of goods for consumers
protect consumers and producers from dramatic price swings
in crease demand for a product
28
MS. Smith's room number is
A122
A121
A120
A123
29
The law of supply states that
price has no effect on the amount producers supply.
as price increases,quantity suppled will increase
as price decreases, producers will supply more of a product.
30
If both demand and supply increase in the market for smartphones,
price will decrease and quantity will decrease.
the change in P is unknown but the Q will certainly increase
price will remain unchanged and quantity will decrease.
the P will increase but the change in quantity is unknown.

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