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

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

price is currently above the equilibrium point.

When the quantity supplied increases, it means that

larger amount of goods are supplied becaus the prc is higher

When supply decreases, it means that

producers will now supply less at every price.

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

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

governments sometimes set prices to

protect consumers and producers from dramatic price swings

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

an increase in the supply of chocolate.

The law of demand states that

as price increase quantity demanded will decrease

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.

The law of supply states that

as price increases,quantity suppled will increase

a decrease in supply will cause

will cause the supply curve to shift left

When demand decreases, it means that

the entire demand curve has decreased , shifted left

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

A change in the price of new cars

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

they have environmental benefits.

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

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Unit 2 Review Economics

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Economics Unit 2: Supply and Demand

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Questions 30

Answers

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

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