An increase in consumer incomes leads to a decrease in demand for camping equipment, then

camping equipment is an inferior good

What will happen in a mrket if demand increases and at the same time, supply decreases?

Equilibrium price will rise and equilibrium quantity may rise or fall

In the market for bananas the supply curve has shifted to the right, then

the supply of bananas will increase.

If a firm expects that the price of its product will be lower in the future than it is today

the firm has an incentive to increase supply now

The price of peanut butter rises and leads to an increase in demand for jelly.

Jam and Peanut butter are substitutes

If the price of a good is equal to the equilibrium price,

quantity demanded = quantity supplied. Price will not change

If the price of a good is above the equilibrium price

there is a surplus and the price will fall

If the price of a good is below the equilibrium price,

there is a shortage and the price will rise

Which of the following would shift the supply curve for energy drinks to the left?

a decrease in the number of firms that produce energy drinks

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#ECON Supply & Demand

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Quick quiz on Supply and demand

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Questions 11

Answers

1
An increase in consumer incomes leads to a decrease in demand for camping equipment, then
camping equipment is a complementary good
camping equipment is a substitute good
camping equipment is a normal good
camping equipment is an inferior good
2
What will happen in a mrket if demand increases and at the same time, supply decreases?
Equilibrium quantity will rise and equilibrium price may rise or fall
Equilibrium price and quantity will both rise
Equilibrium price and quantity will both fall
Equilibrium price will rise and equilibrium quantity may rise or fall
3
In the market for bananas the supply curve has shifted to the right, then
the quantity of bananas supplied will increase.
the supply of bananas will increase.
the quantity of bananas supplied will decrease.
the supply of bananas will decrease.
4
If a firm expects that the price of its product will be lower in the future than it is today
the firm will not change supply till future price is known
the firm has an incentive to increase quantity supplied now
the firm has an incentive to decrease supply now
the firm has an incentive to increase supply now
5
The price of peanut butter rises and leads to an increase in demand for jelly.
Jam and peanut butter jeans are complements
Jam and peanut butter are normal goods
Jam and Peanut butter are substitutes
Jam and peanut butter are inferior goods
6
A positive technological change will increase quantity supplied of a good.
False
True
7
If the price of a good is equal to the equilibrium price,
there is a shortage and price will rise or fall
there is a surplus and the price will rise
quantity demanded = quantity supplied. Price will not change
there is a surplus and the price will fall
8
If the price of a good is above the equilibrium price
there is a shortage and the price will fall
there is a surplus and the price will fall
there is a surplus and the price will rise
there is a shortage and the price will rise
9
Consumer expectations can cause a change in supply
False
True
10
If the price of a good is below the equilibrium price,
there is a shortage and the price will fall
there is a surplus and the price will fall
there is a shortage and the price will rise
there is a surplus and the price will rise
11
Which of the following would shift the supply curve for energy drinks to the left?
increase in income (assuming energy drinks are normal goods)
a decrease in the number of firms that produce energy drinks
decrease in the price of an input used to make energy drinks
a decrease in the expected future price of energy drinks

#ECON Supply & Demand Flashcards | StudBud