Title: Supply and Demand Curves
Course: Demo 1

Q: When the price in some market is above its equilibrium price:
- there is disequilibrium in the market.
- in the typical warehouse for that item, inventory is unintentionally rising.
- the quantity supplied is less than the quantity demanded.
- a shortage exists.
A: there is disequilibrium in the market.; in the typical warehouse for that item, inventory is unintentionally rising.

Q: In economics, “ceteris paribus” refers to an assumption that:
- supply and demand are changing at the same time as all other economic variables.
- price and supply are both changing and all other variables remain constant.
- for simplicity, we assume all external variables except one to be held constant.
A: for simplicity, we assume all external variables except one to be held constant.

Q: Which of the following would cause the supply curve to shift to the right?
- An improvement in technology that increases production efficiency.
- A decrease in production costs.
- An increase in the price of the product.
A: An improvement in technology that increases production efficiency.; A decrease in production costs.

Q: Which of the following are factors that influence the quantity that people are willing and able to consume?
- Price of the good or service and income.
- Consumer preferences and population size.
- Efficiency of production.
A: Price of the good or service and income.; Consumer preferences and population size.

Q: If a drop in the price of taxicab fares shifts the demand curve of private limousine rentals leftward, what does this signify?
- Taxicab rides and limousine rentals are inferior goods.
- Taxicab rides and limousine rentals are normal goods.
- Taxicab rides and limousine rentals are substitutes.
A: Taxicab rides and limousine rentals are substitutes.

Q: When a market is experiencing a shortage, or “excess supply”:
- the equilibrium price is higher than the current market price.
- the quantity supplied is less than the quantity demanded.
- in the typical warehouse for that item, inventory is unintentionally rising.
- there is pressure on the price to fall.
A: the equilibrium price is higher than the current market price.; the quantity supplied is less than the quantity demanded.

Q: Which of the following events will increase supply in the market and shift the supply curve to the right?
- A new technology is introduced that will allow the producer to use fewer natural resources to produce a unit of their good.
- A decrease in the price of inputs to production.
- The government announces that it will subsidize the producer.
A: A new technology is introduced that will allow the producer to use fewer natural resources to produce a unit of their good.; A decrease in the price of inputs to production.; The government announces that it will subsidize the producer.

Q: A change in quantity supplied results from a change in ________, and leads to ________.
- a supply shifter : a shift of the supply curve to the right or left
- quantity demanded : a shift of the supply curve to the right or left
- price : a movement along the supply curve
A: price : a movement along the supply curve

Q: When ________, a typical firm will supply a higher quantity at any given price for its output, and the supply curve will shift to the right.
- prices rise
- there is a population increase
- costs of production fall
A: costs of production fall

Q: A severe freeze has once damaged the Florida orange crop. As a result orange juice producers will pay more for oranges and ultimately consumers will have to pay more for orange juice at the grocery store. The impact on the market for orange juice will cause which of the following to shift to the left?
- the demand curve
- both the supply and demand curves.
- the supply curve
A: the supply curve

Q: In order to discourage people from using potentially dangerous fireworks, the government enacts legislation to tax fireworks. The taxes are treated as costs by businesses, and the result is that the cost of fireworks will increase by over 50%. As a result of this additional tax, which of the following will occur?
- increase in demand
- Increase in supply
- decrease in supply
A: decrease in supply

Q: The equilibrium price for Gizmos is $12, but Gizmos are currently priced at $10 throughout the market. In the typical store that sells gizmos, we might expect:
- the box of available gizmos is often empty.
- you meet people who offer more than $10 for a gizmo.
- the box of available gizmos is always full or overflowing.
A: the box of available gizmos is often empty.; you meet people who offer more than $10 for a gizmo.