Supply & Demand

According to the law of demand, as price rises

When the supply curve shifts right, what happens to market price and quantity?

At any price above the equilibrium price

According to the law of supply, as prices fall

An increase in demand will cause the equilibrium price to

Is the following graph showing a price ceiling or price floor?

When supply shifts to the left, what happens to market price and quantity?

A price ceiling must be placed ______ equilibrium in order to change the market

At a price floor, the market condition that results is called a(n)

T or F: when a price floor is imposed, QS will be less than it was at the EQ price

In the market for car tires, the cost producers pay for rubber and steel belting rises

In the market for new homes, consumer incomes rise

Which of the following is true about the market clearing (equilibrium) price?

T or F: when a price ceiling is put in place QD will be higher than it was at the EQ price

What is the best explanation for the change you see in the supply curve?

When demand increases, the demand curve shifts

When supply decreases the supply curve shifts

Which of the following might have caused the demand curve to shift right?

A decrease in supply will cause the equilibrium price to

If the demand curve shifts left, what will happen to the market price and quantity?

In the market for chocolate, disease in cocoa trees reduces the size of the harvest

In the market for wheat, new technology improves farming and harvesting techniques

In the market for soda, if consumers cut back on drinking sugary drinks

Is the image in the graph a price ceiling or a price floor?

If consumer income rises, how would the demand curve change?