Group 4 Quiz: Changes in Supply, Demand, and Equilibrium

Question 1

There's only 500 concert tickets, but 2500 people wish to attend. How does this affect equilibrium price?

Accepted Answer

Equilibrium price will increase

Question 2

An increase in supply ALWAYS increases equilibrium quantity regardless of if demand increases, decreases, or is constant

Accepted Answer

False

Question 3

Which of the following will cause the greatest decrease in equilibrium price?

Accepted Answer

Demand decreases and supply increases

Question 4

The demand curve for instagram has shifted right. What does this mean for equilibrium price and quantity?

Accepted Answer

Both equilibrium price and quantity increases

Question 5

The demand of abacuses has decreased significantly over time. How has this affected the supply of abacuses?

Accepted Answer

The decreased demand made sellers produce fewer abacuses, decreasing supply

Question 6

If demand increases, the demand curve will shift right.

Accepted Answer

True

Question 7

The price of a sea expedition is 100$. The equilibrium price increases to 245$, and demand/supply both change. Why?

Accepted Answer

Demand increased and supply decreased, Demand decreased but supply decreased by a greater amount

Question 8

If supply increases, the supply curve will shift left.

Accepted Answer

False

Question 9

Demand for avacados is stagnant, but the supply of avacodos increased. What happens to equilibrium price and quantity?

Accepted Answer

Equilibrium price lowers and equilibrium quantity increases

Question 10

Equilibrium price and quantity are the intersection point of the supply and demand curves.

Accepted Answer

True

Questions 10