In economics, demand means

willingness and ability to buy a good

Which of the following will not change the demand for a product?

a change in the price of a product

A market supply curve is composed of

the sum of all firms' supply curves

If you are a baker who specializes in bagels, and the price of flour falls, what will happen?

be willing and able to produce more bagels than before

The word supply refers to

the willingness and ability to produce a good

will be in higher demand if a person's income increases

slope downward from left to right

Quantity supplied refers to

the amount supplied at a particular price

What will happen in the car market if consumers expect higher prices in the near future?

The demand for cars will increase

Which of the following products would be most inelastic?

theater seats for tonights show

Market demand represent

all individual demand curves added together

the price that occurs when the Qd=Qs

If there were a shortage of nurses, we would expect

the wages of nurses to increase

a direct relationship exists when

price and quantity supplied move in the same direction

A supply schedule includes

price and quantity supplied at each price

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Unit 2 Review

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Supply, Demand, and Equilibrium review

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Questions 45

Answers

1
A shift of the demand curve represents
a change in demand
a change in the quantity demanded
a movement on the demand curve
all of the above
2
If the demand curve shifts to the left, it means
there is less of the product
there is more of the product
buyers want to buy less
sellers will produce less
3
An advance in technology would be illustrated on the graph as
movement from C to B
a shift from S1 to S2
movement from A to B
a shift from S1 to S3
4
In economics, demand means
willingness and desire to buy a good
willingness to buy a good
ability to buy a good
willingness and ability to buy a good
5
A change in quantity demanded can be caused by
price of a substitute
price
preference
income
6
Quantity supplied changes because of
advancement in technology
a change in price
a change in resource prices
Both a and b
7
When quantity supplied changes by the same percentage as price, it is
elastic
inelastic
a subsidized good
unit-elastic
8
Which of the following will not change the demand for a product?
a change in the price of a substitute
a change in expectations about the future price of a product
a change in the price of a product
a change in income
9
If the price of a product increases, we would expect the accompanying graph to show
a shift from S1 to S2
movement from A to B
a shift from S1 to S3
movement from C to B
10
Which graph shows the impact on drinking water as a result of a hurricane that hits Florida
graph c
graph b
graph a
graph d
11
Which of the following supply curves demonstrates inelastic supply?
a vertical supply curve
an upward-sloping curve from left to right
a horizontal supply curve
a downward-sloping curve from left to right
12
A tax is placed on a firm's product, which of the following represents the sellers response?
movement from A to B
a shift from S1 to S3
movement from C to B
a shift from S1 to S2
13
A market supply curve is composed of
buyers' demand and sellers' production of a good
the sum of all firms' supply curves
buyers' demand for a good
a firm's supply curve
14
A legal maximum price at which a good can be sold is
equilibrium price
price subsidy
price ceiling
price floor
15
If you are a baker who specializes in bagels, and the price of flour falls, what will happen?
be willing and able to produce fewer bagels than before
be willing and able to produce more bagels than before
buyers would have less of a demand for your bagels
Buyers would have a greater demand for your bagels
16
If all else remains the same, a decrease in the demand for a good
will increase sales
will decrease price
will increase price
will cause a shortage
17
More sellers entering a market would look like
a shift from S1 to S2
a shift from S1 to S3
movement from C to B
movement from A to B
18
The law of demand can be represented
in picture form as a graph
as a schedule listing prices and quantities demanded
in words
All of the above
19
The word supply refers to
a willingness and desire to produce a good
the willingness and ability to produce a good
the quantity produced of a particular good
the ability to produce a good
20
A normal good
has not been damaged
will be in higher demand if a person's income decreases
will be purchased, regardless of changes in income
will be in higher demand if a person's income increases
21
In the accompanying graph, which area shows a surplus
area 3
area 1
area 2
area 4
22
The law of supply is shown on a graph as a
a direct relationship
an inverse relationship
a shift of the curve to the left or right
a shift of the curve up or down
23
When there is a surplus in the market, which of the following is true?
Prices stay the same and producers increase production
The market is in equilibrium
Prices may rise
Prices may fall
24
Demand curves
slope downward from right to left
show a positive relationship
slope upward from left to right
slope downward from left to right
25
The prices consumers pay are determined by
markets
producers
advertising
chance
26
Quantity supplied refers to
a shift in the supply curve to the right
the amount supplied at a particular price
a shift of the supply curve to the left
the amount demanded at a particular price
27
What will happen in the car market if consumers expect higher prices in the near future?
The supply of cars will drop
The demand for cars will decrease
The demand for cars will not change
The demand for cars will increase
28
If there are few or no substitutes for a good, the which of the following is true?
The supply would be elastic
The demand would not change
The demand would be elastic
The demand would be inelastic
29
If the government offers sellers a subsidy for production, the graph would show
a shift from S1 to S2
a shift from S1 to S3
movement from C to B
movement from A to B
30
Equilibrium can be expressed mathematically by
Qd<Qs
Qd=Qs
Qs>Qd
Qd>Qs
31
In the accompanying graph, which area shows a shortage?
area 2
area 3
area 1
area 4
32
Which of the following products would be most inelastic?
T-shirts
fast food
shoes
theater seats for tonights show
33
Market demand represent
all buyers and sellers in the market
all individual demand curves added together
All of the above
all producers in the market
34
If demand for computers increases, the demand curve will
go up
shift to the left
shift to the right
go down
35
Which graph shows what happen if candy producers are told that the cost of sugar has doubled?
graph b
graph a
graph d
graph c
36
Equilibrium price is
any price that doesn't cause a surplus
the price that occurs when the Qd=Qs
any price that doesn't cause a shortage
any price that sellers decide to set
37
If a decrease in income increases the demand for a good, the good is
normal
a complement
inferior
a substitute
38
Which of the following is true when there is a shortage in the market?
Prices stay the same and producers cut production
Prices may fall
Prices may rise
The market is in equilibrium
39
If there were a shortage of nurses, we would expect
the wages of nurses to increase
the wages of nurses to decrease
a decrease demand for nurses
None of the above
40
If prices fall for a product, we could expect the graph to show
movement from A to B
movement from C to B
a shift from S1 to S2
a shift from S1 to S3
41
a market is any place
where buyers and sellers meet
where only sellers offer goods for sale
with a sign designating a store
where fruits and vegetables are sold
42
The demand for necessities such as milk, electricity, and water is usually
unit-elastic
inelastic
elastic
None of the above
43
a direct relationship exists when
price and quantity move in opposite directions
a change in price causes the supply curve to shift right
price and quantity supplied move in the same direction
a change in price cause the supply curve to shift left
44
On a demand curve, a change in quantity demanded is represented by
a shift to the right
All of the above
a shift to the left
a movement along the curve
45
A supply schedule includes
Both a and b
the producer's cost
price and quantity supplied at each price
shifts to the left or right of the supply curve

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