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Unit 3 - Supply & Demand Flashcards | StudBud
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Unit 3 - Supply & Demand
Unit 3 - Supply & Demand
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#economics test review for Unit 3
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Which of the following would NOT cause a demand curve to shift?
a change in consumer's expectations
a change in income
a change in the price of the good
a change in population
2
When supply shifts to the left, what happens to market price and quantity?
Price falls, quantity rises
They both go up
They both go down
Price rises, quantity falls
3
What is the best explanation for the change you see in the supply curve?
Taxes rose
Resource costs rose
Production technology improved
Subsidies to businesses fell
4
When demand increases, the demand curve shifts
Left
Right
5
Is the following graph showing a price ceiling or price floor?
Price floor
Price ceiling
6
At a price floor, the market condition that results is called a(n)
Surplus
Shortage
Equilibrium
7
Is the image in the graph a price ceiling or a price floor?
Price Floor
Price Ceiling
8
Which of the following might have caused the demand curve to shift right?
The number of consumers fell
Consumer income fell
Consumer preferences for the product improved
Resource costs dropped
9
According to the law of demand, as price rises
Producers sell more
Producers sell less
Consumers buy more
Consumers buy less
10
Which of the following is true about the market clearing (equilibrium) price?
Quantity demanded equals quantity supplied
Quantity demanded is greater than quantity supplied
Quantity supplied is greater than quantity demanded
11
Price of movie tickets in a town has risen from $7 to $9. What is the effect of this change
The demand curve for movie tickets will move left
aThe demand curve for movie tickets will move right.
The quantity demand for movie tickets will decrease
The quantity demanded for movie tickets will increase.
12
If consumer income rises, how would the demand curve change?
Consumers will buy less
It will shift right
It will shift left
It will not change
13
A price ceiling must be placed ______ equilibrium in order to change the market
Above
Below
14
In the market for chocolate, disease in cocoa trees reduces the size of the harvest
Supply shifts left
Supply shifts right
Demand shifts left
Demand shifts right
15
The demand curve always slopes
up and to the right
down to the right
straight up and down
down to the left
16
When the supply curve shifts right, what happens to market price and quantity?
Price rises, quantity falls
They both rise
Price falls, quantity rises
They both fall
17
In a market economy, who decides on the prices of goods and services?
firms
local leaders
buyers and sellers
government
18
In the market for wheat, new technology improves farming and harvesting techniques
Supply shifts right
Supply shifts left
Demand shifts right
Demand shifts left
19
What goes on the horizontal axis (x axis) of a demand graph?
change in supply
quantity supplied
quantity demanded
price
20
A table that lists the quantity of a good that a single person will buy at each price is called
Individual Demand Schedule
Individual Supply chart
Market Demand Schedule
Supply and Demand chart
21
If the demand curve shifts left, what will happen to the market price and quantity?
Price rises, quantity falls
Price falls, quantity rises
They both go up
They both go down
22
According to the law of supply, as prices fall
Quantity supplied does not respond
Quantity supplied rises
Quantity demanded by consumers falls
Quantity supplied falls
23
A decrease in supply will cause the equilibrium price to
Fall
Rise
24
When supply decreases the supply curve shifts
Left
Right
25
A shift in the demand curve means....
a change in demand at every price
a change in consumer income
a rise in prices
a decrease in both price and quantity demanded
