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Duplicate of AP Macro: Supply and Demand pt.1 Flashcards | StudBud
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Duplicate of AP Macro: Supply and Demand pt.1
Duplicate of AP Macro: Supply and Demand pt.1
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StudBud Administration
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AP review for Supply and Demand #apmacro #supply #demand
Flashcards
20 cards
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Practice quiz
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Questions
20
Answers
1
Gov. bans the import of sugar from foreign countries. Which direction does supply shift in US?
Not enough information
Left
No change
Right
2
Recent demand for donuts, an inferior good, has increased. This increase might be explained by
an increase in the price of a substitute good
an increase in consumer income
a change in buyer tastes
a change in consumer expectations
3
One can say with certainty that equilibrium quantity will increase when supply :
and demand both decrease
decreases and demand increases
increases and demand decreases
and demand both increase
4
Which of the following is most likely to be an inferior good?
fur coats
ocean cruises
dinner at a nice restaurant
used clothing
5
Suppose a tax is imposed on product X. We would expect this tax to:
↑ demands for both complement good Y and substitute Z
↑ demand for complement good Y and ↓ demand for substitute Z
↓ demands for both complementary good Y and substitute Z
↓ demand for complement good Y and ↑ demand for substitute Z
6
An unusually large crop of coffee beans might:
decrease the quanttty of coffee consumed
increase the supply of coffee
increase the price of coffee
increase the price of tea
7
In constructing a stable demand curve for product X:
consumer preferences are allowed to vary
the supple curve of porduct X is assumed to be fixed
money incomes are allowed to vary
the prices of other goods are assumed constant
8
For a downsloping demand curve and upsloping supply curve, ↑ in consumer income will:
↓ equilibrium price & quantity if the it is a normal good
have no effect on equilibrium price and quantity
reduce the quantity demanded, but not shift the demand curve
↑ equilibrium price & quantity if it is a normal good
9
Which of the following will not cause the demand for product K to change or shift?
change in the price of close-substitute product J
a change in the price of K
an increase in consumer incomes
a change in consumer tastes
10
The price of an iPhone drops from $400 to $99. Will this cause ΔD or ΔQD?
ΔQD
ΔQS
ΔD
ΔS
11
At the point where the demand and supply curves intersect:
quantity demanded exceeds quantity supplied
the market is in disequilibrium
quantity supplied exceeds quantity demanded
there is neither a surplus nor a shortage of the product
12
The demand curve shows the relationship between
price and production costs
price and quantity demanded
money income and quantity demanded
consumer tastes and the quantity demanded
13
Producers of pizza can get cheese for half price. What's the impact on the market for pizza?
ΔS
ΔQD
ΔQS
ΔD
14
A bicycle co. predicts that a rise in consumer incomes will increase the demand for bicycles.
There are many goods taht are complementary to bicycles
There are many goods that are substitutes for bicycles
This means bicycles are normal goods.
There are few goods that are substitutes for bicycles
15
Netflix announces increase in prices. What will this do to the market for Redbox dvds?
ΔD
ΔS
ΔQS
ΔQD
16
The government bans the importing of sugar. What happens to the market for sugar in the US?
ΔS
ΔQD
ΔQS
ΔD
17
Creating demand and supply curves assumes that the main variable influencing decisions is...
preferences
incomes
expectations
price
18
Buyers want to buy more of the cheaper good and less of the more expensive similar good.
price effect
income effect
cost effect
substitution effect
19
Netflix announces increase in prices. Which way will the demand curve shift for Redbox dvds?
Right
Left
Not enough information
No shift
20
Increasing the tax on cigarette production raises the price of cigarettes by shifting the:
supply curve for cigarettes leftward
demand curve for cigarettes leftward
supply curve for cigarettes rightward
demand curve for cigarettes rightward
