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

change in QD means there is just a movement along the curve.

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

drought throughout the US, which affected many farmers.

When supply increases, what will happen to the equilibrium price and quantity?

Price decreases; quantity increases.

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

an increase in the supply of chocolate.

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

change in price is unknown but the quantity will increase.

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

A change in the price of new cars.

In most circumstances, an increase in demand will cause

price to increase and quantity to increase

In almost all circumstances, a decrease in supply will cause

price to increase and quantity to decrease.

In a market economy, equilibrium is determined

Through the interaction of buyers and sellers

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

price is currently above the equilibrium point.

The law of supply states that

as price increases, producers will supply more of a product.

The law of demand states that

price increases will cause demand to drop

Suppose the minimum wage is a price floor. When it is set above the equilibrium point,

there will be an excess supply of labor resulting in surplus

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Supply and Demand Review

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Questions 23

Answers

1
A price control placed above equilibrium price is called a
Surplus
Price Ceiling
Price Floor
Shortage
2
A change in the quantity demanded is different than a change in demand because
a change in the QD means the entire demand curve has moved
only the equilibrium quantity changes when the QD changes
only the equilibrium price changes when QD changes.
change in QD means there is just a movement along the curve.
3
Which of the following will cause a shift in the supply curve for corn?
Thousands of tobacco farmers switch production to cotton.
new study shows the health benefits of consuming more corn.
drought throughout the US, which affected many farmers.
Consumer incomes increase.
4
When supply increases, what will happen to the equilibrium price and quantity?
Price increases; quantity increase.
Price decreases; quantity increases.
Price decreases; quantity decreases.
Price increases; quantity decreases.
5
Price ceilings usually create a ___; while price floors usually create a ___.
surplus; shortage
shortage; surplus
shortage; quota
quota; surplus
6
What happens to the equilibrium price when demand increases?
it increases
it increases and then decreases
it decreases
it stays the same
7
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 supply of chocolate.
an increase in the quantity supplied of chocolate.
a decrease in the quantity supplied of chocolate.
8
If both demand and supply increase in the market for smartphones,
change in price is unknown but the quantity will increase.
price will remain unchanged and quantity will decrease.
price will increase but the change in quantity is unknown.
price will decrease and quantity will decrease.
9
A price control placed below equilibrium is called a
Price Floor
Price Ceiling
Shortage
Surplus
10
Which of the following will NOT cause a shift in the demand curve for new cars?
A change in consumer income.
A change in the price of new cars.
Consumers expect the economy to shrink in the near future.
marketing campaign conducted by leading car manufacturers.
11
In most circumstances, an increase in demand will cause
price to increase and quantity to increase
price to decrease and quantity to increase.
price to decrease and quantity to decrease.
price to increase and quantity to decrease.
12
All of the following goods are likely considered substitute goods for orange juice EXCEPT
apple juice
chips
sport drinks
pineapple juice
13
In almost all circumstances, a decrease in supply will cause
price to increase and quantity to increase.
price to increase and quantity to decrease.
price to decrease and quantity to decrease.
price to decrease and quantity to increase.
14
In a market economy, equilibrium is determined
When the government sets a stable price
Through the interaction of buyers and sellers
By the buyers
By the sellers
15
An excess amount of bananas in a competitive market would indicate that
demand curve will increase to consume the excess demand.
price is currently above the equilibrium point.
consumers want to purchase more bananas than producers sell
market will be unable to find equilibrium price and quantity
16
All of the following scenarios will cause supply to increase EXCEPT if
sellers exit the market.
the opportunities in different markets are bad.
the costs of production decrease.
technology improves.
17
All of the following groups of people benefit from a price floor in the milk market EXCEPT
cheese manufacturers
milk bottling company
consumers of milk
dairy farmers
18
The law of supply states that
price increases will affect the QS if the item is inelastic.
price has no effect on the amount producers supply.
as price decreases, producers will supply more of a product.
as price increases, producers will supply more of a product.
19
The law of demand states that
as price increases, consumers will demand more of a product.
as price decreases, consumers will demand less of a product
price increases will cause demand to drop
price has no effect on the amount consumers demand.
20
Suppose the minimum wage is a price floor. When it is set above the equilibrium point,
there will be an excess supply of labor resulting in surplus
nothing, price floor is supposed to be set below equilibrium
employers will increase the amount of people they hire.
the unemployment rate will drop dramatically.
21
All of the following goods are likely considered complementary goods for computers EXCEPT
keyboard
software
gasoline
printers
22
When the price of Good X decreases, the demand for Good Y increases. Good X and Good Y are
inferior goods
unrelated goods.
substitute goods
complementary goods
23
Which of the following events would cause demand to decrease?
Consumers expect good things to happen in the future.
Product is a fad.
Suppliers enter the market.
Consumers leave the market.

Supply and Demand Review Flashcards | StudBud