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Econ Review: Chapter 5 Demand and Supply Flashcards | StudBud
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Econ Review: Chapter 5 Demand and Supply
Econ Review: Chapter 5 Demand and Supply
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Review Quiz: Demand and supply. #tamoclass #sbhsecon
Flashcards
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Questions
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Answers
1
Consider the market for turkeys. In the US, because of Thanksgiving in the month of November
the supply curve of turkeys shifts right
there is an upward movement on the supply curve for turkeys
the demand curve for turkeys shifts left
there is a downward movement on the demand curve for turkeys
2
A demand curve
has a downward slope
is a graph showing relationship between production & price
has an upward slope
has a horizontal slope
3
The law of supply
cannot be illustrated by graphs and tables
cannot be represented visually in any way
can be illustrated by graphs and tables
has graphic representation similar to the law of demand
4
According to the law of supply, higher prices prompt manufacturers to
produce more
stop production
produce less
maintain current production
5
Consider the market for peanut butter. If there is an increase in the price of peanuts,
there will be a decrease in the supply of peanuts
there will be an upward movement on the supply curve
there will be a decrease in the supply of peanut butter
the supply curve for peanuts will shift right
6
Which of the following would NOT encourage a producer to enter a particular industry?
Production costs are low
Profits are high
The price of the product is low
The manufacturing process is efficient
7
Which of the following describes the concept of supply?
An indirect relationship between price & quantity supplied
A direct relationship between price & quantity supplied
It has the same relationship to price as demand
Supply and price move in the same direction
8
An improvement in technology
will shift the supply curve to the left
will shift the supply curve to the right
will not affect the supply curve
is not a determinant of supply
9
Consider the market for bread. If there is an increase in the price of wheat, the
supply curve of bread will shift left
price of bread will decrease
demand curve for bread will shift left
demand curve for bread will shift right
10
There is a cause-and-effect relationship between supply and demand and
price
interest rates
stock dividends
inflation
11
You buy one ice cream cone in the school cafeteria, but whether you buy a second depends on
utility
equity
equilibrium
surplus
12
The quantity demanded of products is affected by
outputs versus inputs
surplus
inputs and outputs
price
13
Which of the following will cause the supply curve to shift to the left?
an increase in the number of firms in the industry
an improvement in technology
a reduction in the price of inputs
an increase in taxes
14
Which of the following is not a determinant of demand?
Seaside see an increase in customers during summer months
On September 20th the minimum wage will be raised by $1.25
Chia pets becomes hottest item in home decorating fashion
The city council approves an increase in business taxes
15
According to the law of demand, quantity and price
move in the same direction
move in opposite directions
are not related
stay at the same level
16
The point of diminishing marginal utility for an item is reached when a person values the item
less than other items
more than the money paid for it
less than the money paid for it
as much as the money paid for it
17
Which one of the following would not have the same effect on the amount of beef consumed?
a rise in the price of lamb
a fall in the price of beef
an effective advertising campaign by beef producers
an effective advertising campaign by pork producers
18
Peanut butter & jelly are complements. If there is an increase in the price of jelly,
the price of peanut butter will rise
there will be a shift in the supply curve for jelly
there will be a shift in the demand curve for peanut butter
the quantity of peanut butter will increase
19
As the price rises for a good
the quantity supplied increases
manufacturers stop producing it
the quantity supplied decreases
consumers stop buying it
20
Demand elasticity for a product depends whether an item is a luxury or necessity, the price, &
advertising
style
individual preference
available substitutes
21
Which of the following causes the demand curve to shift to the left?
a new fad
a decrease in income
a decrease in the price of a complementary good
an increase in population
22
When the government imposes more taxes on businesses,
the businesses will not want to supply as much as before
the businesses will supply more than before
the supply curve will not be affected
the supply curve for products will shift to the right
23
Changes in supply result from
equilibrium
income changes
chance
price changes
24
A market is defined as
a physical place where people buy both goods & services
a store where people buy physical goods
any arrangement that brings buyers & sellers together
a physical place where people buy only goods
25
A supply curve shows quantities of an item to explain
how much the item costs
how popular the item is
the amount of inventory
the relationship between price and quantity produced
26
Which of the following is subject to the greatest elasticity of demand?
bread
insulin
chewing gum
gasoline
27
Autoworkers negotiate a wage increase. How does this change affect the supply curve of cars?
Doesn't shift the supply curve or create a movement along it
It shifts the supply curve right
It creates a movement downward along the supply curve
It shifts the supply curve left
28
If population increases, the demand curve for an item moves
unpredictably
not at all
to the right
to the left
29
Which of the following describes what results when the price of a good increases?
Producers will want to produce more
Producers will lower the price
Producers will want to produce less
Producers will stop producing the good
30
When prices become too high for consumers, they look for
substitute items
inflation
luxuries
inelastic demand
31
The supply of which of the following commodities is most elastic?
gold
plastic toys
corn
eggs
32
Which of the following explains what happens when the price of inputs drops?
The supply curve will shift to the right
The supply curve will shift to the left
The price of inputs does not a determinant of supply
The supply curve will not be affected
33
Graph that shows the amount of a product sellers are willing to produce at different prices is
not accurate for high-priced goods
the demand curve
the supply curve
not accurate for low-priced goods
34
The relationship between price and quantity supplied is
a negative one
nonexistent
an indirect one
a direct one
35
Which of the following is not a determinant of supply?
Environmental laws are relaxed for U.S. steel industry
Hot-N-Now opens its new franchises
rising gas prices increases shipping cost of SNARF cat food
farmers move from rural to cities seeking better jobs
36
Consider the market for camera film. If more people start using digital cameras,
there is a movement up on the demand curve for film
the demand curve for film shifts left
the supply curve of film shifts right
there is a movement down on the demand curve for film
37
Consider the market for wheat. If there is an improvement in harvesting technology,
the demand curve for wheat shifts left
the demand curve for wheat shifts right
the supply curve for wheat shifts right
there is a movement up on the demand curve
38
People decide what to buy and how much they are willing to spend based on
utility
income
price
supplies
39
Which of the following would probably lead to an increase in the demand for bricks?
increase in the price of lumber, a substitute for bricks
increase in the price of bricks
decrease in the income of potential home builders
increase in the wages of bricklayers
