Title: Supply and Demand
Course: Macro Quiz Test

Q: Which of the following describes a market economy?
- Resources and businesses are owned by the government.
- There is no private property.
- Economic decision-making happens through markets.
A: Economic decision-making happens through markets.

Q: Market economies are based on private enterprise, which means
- private companies control the government.
- there is no private property.
- economic decision-making happens through markets.
A: economic decision-making happens through markets.

Q: Which of the following statements describes a free market?
- There are price controls.
- The number of sellers is limited to a select few.
- Government does not intervene in any way.
A: Government does not intervene in any way.

Q: A free market is described by which of the following statements?
- Inputs are free to sellers.
- The price of outputs is controlled by the government.
- The government does not intervene in any way.
A: The government does not intervene in any way.

Q: Which of the following statements describe a competitive market?
- Government does not intervene in any way.
- The number of sellers is limited to a select few.
- There is a large number of buyers and sellers.
A: There is a large number of buyers and sellers.

Q: A competitive market is one in which
- everyone owns the factors of production.
- government makes most decisions about what will be produced.
- there is a large number of buyers and sellers.
A: there is a large number of buyers and sellers.

Q: If a country has an economy where people can buy and sell freely, but the government sets some price restrictions and regulations then it likely has a________ economy.
- free market
- command
- mixed market
A: mixed market

Q: The country of Armenia has an economy that includes people buying and selling freely, a government setting some price restrictions such as a minimum wage equivalent to $5 hour and regulates certain industries (pharmaceutical, mining, and farming). Armenia’s economy is likely a ________ economy.
- free market
- command
- mixed market
A: mixed market

Q: Tangi Tumolo carves and creates beautiful furniture on the island of Kiribati. Each month he takes the furniture to the capital city of South Tawara and sells what he can for the best prices he can. He also takes orders from people each month to build certain furniture indicating what is currently in demand. Each month the prices and products very a bit depending on the demand in the market. Tangi enjoys the ebb and flow of the changing market as it keeps his business interesting and current with demand. Kiribati’s government takes a ‘hands off’ approach with the economy and the market is thriving on its own. Tangi Tumolo lives in what type of economy?
- command
- mixed
- free Market
A: free Market

Q: Stormie Zanzibar owns a bakery in the fictitious country of Olombia. Each month the government’s market ministry mails her a large list of the regulated price of goods which include products like bread, muffins and flat bread. The list also dictates the types of goods she can sell at the bakery and what she is to charge. Because of the regulations placed on these goods, Stormie has increased her production of sweets, pies, cakes, croissants and buns and decreased her supply of breads, muffins and flat bread. She has taken these steps because the sweet goods’ prices are not government controlled. Stormie Zanzibar lives under what type of economy?
- free Market
- command
- mixed
A: mixed

Q: In a planned economy, government determines what can be produced and
- firms determined what prices will be charged.
- allows prices to change depending on market conditions.
- what prices will be charged.
A: what prices will be charged.

Q: In a planned economy, government determines the prices for goods and services, and
- firms determine what goods to produce to maximize profits.
- allows consumers to influence prices based on demand behavior.
- what goods will be produced.
A: what goods will be produced.

Q: Which country has characteristics of a command economy?
- United States
- Australia
- North Korea
A: North Korea

Q: Which country has characteristics of a command economy?
- United States
- Singapore
- Cuba
A: Cuba

Q: Nathanael runs a government auto repair shop in the fictitious country of Zamiland. He would love to own his own shop, but he would have leave Zamiland to be able to do so. Each month the government’s Ministry of Transportation secretly sends an inspector to make sure Nathanael is running the shop as required by the ministry’s regulations. This month he is written up and fined for not disposing of used oil in the government’s toxic waste receptacles. He could also be looking at jail time if this happens again. Nathanael is living with what type of economy?
- free Market
- mixed
- command
A: command

Q: In East Germany, back before the Berlin wall fell, there was one manufacturer of cars (VEB Sachsenring Automobilwerke Zwickau). They produced one type of car, the Trabant, with a maximum speed of 55 mph (26 horsepower lawnmower type engine). Anyone who wished to buy a car put their name on a list and waited for two or three years to be able to purchase a ‘Trabbi’. Whatever was available when their name came up was what they got--no choice of color, style, or engine size. East Germans were living with what type of economy?
- free Market
- mixed
- command
A: command

Q: A ruthless dictator has recently taken over the small island of Tokoli’s government and is making changes to how the government and economy used to be. One of his first actions is to enforce a command economy so as to control all aspects of the country. As you watch this new dictator’s changes, which of these actions would be in line with this new command economy he is creating?
- He opens up the economy to admit foreign companies to create business in the country and have access to the country’s resources.
- He deregulates government owned land and resources and allows the people to purchase them and create private businesses.
- He creates a new government body called the Ministry of Planning which will set wages, prices and production targets to reach each month.
A: He creates a new government body called the Ministry of Planning which will set wages, prices and production targets to reach each month.

Q: After the death of the queen in the country of Chedeux, her daughter, Chantasia became the new queen and ruler. Chantasia is known to be a ruler of the people, but as she gains more power from the populus, she begins to instigate sweeping changes to the economy and government, all in the name of helping the ‘most downtrodden among us’. One of her first actions is to enforce a command economy to control all aspects of the country and regulate its wealth. As one of the queen’s subjects, you’ve seen the changes she made. Which of these actions would be in line with this new command economy she is creating?
- Chantasia now allows foreign companies to create business in the country and have access and control over the country’s resources.
- Chantasia deregulates government owned land and resources and allows the people to purchase them and create private businesses.
- Chantasia creates a new government body called the Ministry of Planning which will set wages, prices and production targets to reach each month.
A: Chantasia creates a new government body called the Ministry of Planning which will set wages, prices and production targets to reach each month.

Q: Economists refer to the relationship that a higher price leads to a lower quantity demanded as the
- production possibilities frontier.
- price and demand model.
- law of demand.
A: law of demand.

Q: When higher prices result in a lower quantity demanded, economists call this relationship
- the demand curve.
- the price and demand model.
- the law of demand.
A: the law of demand.

Q: According to the law of demand, assuming other factors are held constant,
- as the price of bread increases, the quantity of bread demanded will increase.
- as the demand for bread increases, the price of bread will also increase.
- as the price of bread increases, the quantity of bread demanded will decrease.
A: as the price of bread increases, the quantity of bread demanded will decrease.

Q: According to the law of demand, assuming other factors are held constant
- As the price of milk increases, the quantity of milk demanded will increase.
- As the demand for milk increases, the price of milk will also increase.
- As the price of milk decreases, the quantity of milk demanded will increase.
A: As the price of milk decreases, the quantity of milk demanded will increase.

Q: The law of demand states that as the price of a good increases,
- more of it is produced.
- suppliers wish to sell less of it.
- buyers desire to purchase less of it.
A: buyers desire to purchase less of it.

Q: The law of demand states that as the price of a good decreases,
- less of it is produced.
- suppliers wish to sell more of it.
- buyers desire to purchase more of it.
A: buyers desire to purchase more of it.

Q: Miriam owns a small shop selling custom headbands and accessories. Last month, she sold 335 headbands for $10 each. According to the law of demand, what quantity might Miriam expect to sell if she drops the price to $6?
- 290
- 335
- 415
A: 415

Q: If a perfume store currently sells perfume for $30 a bottle and averages $2000 sales per month, what sales might they anticipate if they raise the price to $40 a bottle?
- $2000
- $2500
- $1500
A: $1500

Q: A demand curve shows the graphical relationship between price and
- quantity produced.
- costs.
- quantity demanded.
A: quantity demanded.

Q: A demand curve shows the graphical relationship between quantity demanded and
- quantity produced.
- costs.
- price.
A: price.

Q: The downward slope of a demand curve illustrates the pattern that as ________ rises, ________ decreases.
- price; quantity supplied
- quantity supplied; quantity demanded
- price; quantity demanded
A: price; quantity demanded

Q: The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.
- price; quantity supplied
- quantity supplied; quantity demanded
- price; quantity demanded
A: price; quantity demanded

Q: According to this graph, what happens to quantity demanded if the price of a used car increases from $5000 to $7000?
- The quantity demanded increases to 1,000 cars.
- The quantity demanded drops to 3,100 cars.
- The quantity demanded drops to 1,000 cars.
A: The quantity demanded drops to 1,000 cars.

Q: According to this graph, what happens to quantity demanded if the price of a used car decreases from $4000 to $2000?
- The quantity demanded increases to 4,300 cars.
- The quantity demanded increases to 6,500 cars.
- The quantity demanded falls to 6,500 cars.
A: The quantity demanded falls to 6,500 cars.

Q: You are given this demand schedule for new boats. Which of the following demand curves accurately represents the demand schedule and has proper formatting? The demand schedule for new boats:

Price ($) | Quantity Demanded
$500 | 5500
$1000 | 5000
$1500 | 4500
$2000 | 3500
$2500 | 3000
$3000 | 2000
$3500 | 1000
$4000 | 150
A: (a choice with no text)

Q: You are given this demand schedule for new computers. Which of the following demand curves accurately represents the demand schedule and has proper formatting? The demand schedule for new computers:

Price ($) | Quantity Demanded
$500 | 5500
$1000 | 5000
$1500 | 4500
$2000 | 3500
$2500 | 3000
$3000 | 2000
$3500 | 1000
$4000 | 150
A: (a choice with no text)

Q: Analyze the following diagram:

If price was $2.00 per gallon and decreased to $1.40 per gallon, how does quantity of gasoline demanded change?
- 600 million gallons to 460 million gallons
- 460 million gallons to 700 millions gallons
- 460 million gallons to 600 million gallons
A: 460 million gallons to 600 million gallons

Q: Analyze the following diagram:

If price was $1.40 per gallon and increased to $2.00 per gallon, how does quantity of gasoline demanded change?
- 460 million gallons to 600 million gallons
- 460 million gallons to 700 millions gallons
- 600 million gallons to 460 million gallons
A: 600 million gallons to 460 million gallons

Q: Analyze the following diagram:

If the price was $3.00 per kilogram of oranges, and the price fell by $1.00, how does the quantity of oranges demanded change?
- 300 thousand kilograms to 250 thousand kilograms
- 260 thousand kilograms to 290 thousand kilograms
- 250 thousand kilograms to 300 thousand kilograms
A: 250 thousand kilograms to 300 thousand kilograms

Q: Analyze the following diagram:

If the price per kilogram of oranges was $2.10, and the price went up to $2.50 per kilogram, how many fewer thousand kilograms will be demanded?
- 5,000
- 10,000
- 20,000
A: 20,000

Q: Marcus is the chief data analyst of the U.S. Fish and Wildlife Service for the West Coast. There is a growing concern about the overfishing in the Pacific fisheries, and Marcus needs to estimate the demand curve for salmon as part of the agency’s mitigation efforts. From data already collected he sees that when the price of a freshly caught salmon is $400, the public will demand a quantity of 1 million fish. If the price is $215 then the public will demand 4 million fish. Finally, if the price was $50 consumers will demand a quantity of 8 million fish. Which curve below is the correct demand curve for Pacific salmon given these three data points?
- the blue curve
- the silver curve
- the orange curve
A: the orange curve

Q: Amka is the head analyst for the Alaska Department of Fish and Game Service. Recently the agency has become concerned about overfishing in the waters off Alaska. Amka is estimating the demand curve for salmon as part of the agency’s mitigation efforts. From past statistics she knows that when the price of a freshly caught salmon is $400, the public will demand a quantity of 1 million fish. If the price is $200 then the public will demand 5.6 million fish. Finally, if the price was $125 consumers will demand a quantity of 8 million fish. Which curve below could be the correct demand curve for Alaskan salmon given these three data points?
- the blue curve
- the orange curve
- the silver curve
A: the silver curve

Q: Which of the following graphs depicts the correct version of the data set representing the number and price of watches with price on the y-axis and quantity demanded on the x-axis?

Watches
Price ($) | Quantity Demanded
$300 | 10
$250 | 50
$200 | 100
$150 | 200
$100 | 300
$50 | 400
$25 | 500
$5 | 600
- and ends at 300,0)
- and ends at 650,0)
- and ends at 600,0)
A: and ends at 600,0)

Q: and ends at 600,0) Which of the following data sets depicts the correct version of the above quantity Demand graph representing the number and price of watches. The x-axis shows quantity and the y-axis shows price.
- Table 3
Quantity Demanded | Prices ($)
50 | $300
100 | $250
200 | $200
300 | $150
400 | $100
500 | $50
600 | $25
650 | $5
- Table 1
Prices ($) | Quantity Demanded
$10 | 300
$50 | 250
$100 | 200
$200 | 150
$300 | 100
$400 | 50
$500 | 25
$600 | 5
- Table 2
Prices ($) | Quantity Demanded
$300 | 10
$250 | 50
$200 | 100
$150 | 200
$100 | 300
$50 | 400
$25 | 500
$5 | 600
A: Table 2
Prices ($) | Quantity Demanded
$300 | 10
$250 | 50
$200 | 100
$150 | 200
$100 | 300
$50 | 400
$25 | 500
$5 | 600

Q: Two common ways to discourage tobacco use are taxes on tobacco and information campaigns on the hazards of tobacco use. Which one causes a shift in the demand curve for smoking?
- Tax on tobacco products that drives up its price.
- Both cause a decrease in demand.
- Information campaign on hazards of tobacco.
A: Information campaign on hazards of tobacco.

Q: Information campaigns about tobacco hazards and taxes on tobacco are two ways to discourage its use. Which one causes a movement along the demand curve?
- The tax on tobacco products that drives up its price.
- Both cause a decrease in demand
- The Information campaign on hazards of tobacco.
A: The Information campaign on hazards of tobacco.

Q: What would cause the level of demand (meaning the relationship between price and quantity demanded) to shift?
- Consumer incomes remain unchanged.
- The price of the good increases.
- Population grows in a particular market area.
A: Population grows in a particular market area.

Q: In order for the relationship between price and quantity demanded to shift, (known as the level of demand), what would need to take place?
- Population remains constant in a particular market area.
- The price of the good increases.
- Consumer incomes increase.
A: Consumer incomes increase.

Q: Complete the following sentence: If people think that the price of electronics will increase in the near future, that belief may cause a(n)
- increase in the supply of electronics today.
- decrease in the price of electronics today.
- increase in the demand for electronics today.
A: increase in the demand for electronics today.

Q: Complete the following sentence: If people think that the price of televisions will decrease in the near future, that belief may cause a(n)
- increase in the supply of televisions today.
- increase in the price of televisions today.
- decrease in the demand for televisions today.
A: decrease in the demand for televisions today.

Q: Bob sells farm equipment in Iowa and has for twenty years. The last two months he has seen the quantity demanded for high-end tractors decrease by 35% compared to the same time last year. What is a possible explanation for events that have shifted the demand curve?
- Customers’ incomes have increased.
- The price of tractors has increased.
- Customers’ incomes have decreased.
A: Customers’ incomes have decreased.

Q: A new tool manufacturer opened a plant in town three months ago and hired 3000 new employees. People now have extra cash to spend and are out spending in the town. What is an example of how this extra money may shift the demand curve for goods and services in the town?
- There is a 20% decrease in the amount of tires sold at the local automotive store.
- The price of used cars has remained the same as before.
- A local restaurant has a 40% increase in the number of dinners.
A: A local restaurant has a 40% increase in the number of dinners.

Q: If a decrease in the price of MP3 players decreases the demand for CD players, this means that
- MP3 players and CD players are inferior goods.
- MP3 players and CD players are normal goods.
- MP3 players and CD players are substitutes.
A: MP3 players and CD players are substitutes.

Q: If an increase in the price of Nike shoes increases the demand for Adidas shoes, this means that
- Nike shoes and Adidas shoes are inferior goods.
- Nike shoes and Adidas shoes are normal goods.
- Nike shoes and Adidas shoes are substitutes.
A: Nike shoes and Adidas shoes are substitutes.

Q: When the price of a particular good increases
- demand for substitute goods falls.
- demand for normal goods rises.
- demand for complementary goods falls.
A: demand for complementary goods falls.

Q: If Pepsi goes on sale, what will happen to the demand for Coca-Cola?
- Demand for Coca-Cola will increase.
- Demand for Coca-Cola will stay the same.
- Demand for Coca-Cola will decrease.
A: Demand for Coca-Cola will decrease.

Q: The price of printers at the big box technology stores increases as a new type of print technology is rolled out to consumers. Which of the following scenarios for a complementary printer good would likely take place?
- The demand for printer ink rises as people stock up with their new printers.
- The demand for printer paper rises as people stock up.
- The demand for printer ink decreases as less people are buying printers.
A: The demand for printer ink decreases as less people are buying printers.

Q: If the demand for home gaming system games has dramatically increased in the last month, what scenario is most likely to have happened?
- More people have been laid off from their jobs and have more time on their hands.
- The population of gamers has found substitutes for game technologies.
- There have been great deals on gaming systems for the holidays.
A: There have been great deals on gaming systems for the holidays.

Q: Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product?
- thread
- sewing machines
- dresses
A: dresses

Q: George owns a custom pottery business where he makes all types of mugs and drinkware. Which of the following products would dramatically affect his profit margins if the price were to decrease for that product?
- clay
- silverware
- coffee mugs
A: coffee mugs

Q: Analyze the following diagram:

A new study shows that onions improve cognitive and heart health. This causes the demand curve to shift to the right, so that consumers demand 20 lbs more onions at any given price. What two points must the new demand curve pass through?
- ($3.00, 380 lbs) and ($2.10, 470 lbs)
- ($2.70, 430 lbs) and ($2.20, 480 lbs)
- ($3.00, 420 lbs) and ($2.10, 510 lbs)
A: ($3.00, 420 lbs) and ($2.10, 510 lbs)

Q: Imagine that a new study reveals that onion consumption is correlated with cancer. This shift in popularity will likely cause the new demand curve to run through which of the following points?
- ($3.00, 420 lbs) and ($2.10, 510 lbs)
- ($3.00, 380 lbs) and ($2.10, 470 lbs)
- ($2.70, 400 lbs) and ($1.90, 480)
A: ($2.70, 400 lbs) and ($1.90, 480)

Q: Analyze the following diagram:

You own an auto dealership that has recently been sued for selling poor quality cars. The diagram represents your demand curve before the lawsuit. You find that subsequent the lawsuit the demand for cars has decreased by 10% at any given price. What two points must the new demand curve pass through?
- ($20,000, 100) and ($15,000, 200)
- ($18,000, 90) and ($13,500, 180)
- ($20,000, 90) and ($15,000, 180)
A: ($20,000, 90) and ($15,000, 180)

Q: Analyze the following diagram:

You own an auto dealership that has recently received many five star customer reviews at online review sites stating you sell quality cars and are very trustworthy. The diagram represents your demand curve before the online reviews. You find that the positive online reviews increase the demand by 20 cars at any given price. What two points will the new demand curve probably pass through?
- ($20,000, 100) and ($15,000, 200)
- ($18,000, 80) and ($13,500, 180)
- ($20,000, 120) and ($15,000, 220)
A: ($20,000, 120) and ($15,000, 220)

Q: Analyze the following diagram:

The new “Hungry for Apples?” campaign has been a resounding success, so that the quantity demanded is now 100% greater than before the ad campaign. If the curve above represents demand after the campaign, what was the original quantity demanded when price was $4.60?
- 40
- 80
- 20
A: 20

Q: The new “Hungry for Apples?” campaign has been a resounding success, so that the quantity demanded is now 100% greater than before the ad campaign. If the curve above represents demand after the campaign, what was the original quantity demanded when price was $4.40?
- 50
- 100
- 25
A: 25

Q: and ends at (12,5). Another downward sloping line starts at (6,30) and ends at (16,5)) Wallace is analyzing the American moped market for BMW. The main competition, Vespa, dropped their listing price by 20% recently. When creating a demand curve arrows are used to indicate the direction of the demand curve shift. Which is the correct direction the arrows should be drawn for the moped market and which line is the old demand and new demand curve?
- The arrows should be drawn pointing leftwards. The curve on the left represents the old demand and the curve on the right the new demand.
- The arrows should be drawn pointing rightwards. The curve on the right represents the new demand and the curve on the left old demand.
- The arrows should be drawn pointing leftwards. The curve on the right represents the old demand and the curve on the left new demand.
A: The arrows should be drawn pointing leftwards. The curve on the right represents the old demand and the curve on the left new demand.

Q: and ends at (12,5). Another downward sloping line starts at (6,30) and ends at (16,5)) Alice is analyzing the American moped market for Vespa. The main competition, BMW, increased their listing price by 20% recently. Arrows are used to indicate the direction of the demand curve shift in a graph. Which is the correct direction the arrows should be drawn to reflect the moped market and which line is the old demand and new demand curve?
- The arrows should be drawn pointing leftwards. The curve on the left represents the old demand and the curve on the right the new demand.
- The arrows should be drawn pointing leftwards. The curve on the right represents the old demand and the curve on the left new demand.
- The arrows should be drawn pointing rightwards. The curve on the right represents the new demand and the curve on the left old demand.
A: The arrows should be drawn pointing rightwards. The curve on the right represents the new demand and the curve on the left old demand.

Q: Economists refer to the relationship that a higher price leads to a higher quantity supplied as the
- market equilibrium.
- price and supply model.
- law of supply.
A: law of supply.

Q: When higher prices result in higher quantity supplied, economists call this relationship
- the supply curve.
- price and supply model.
- the law of supply.
A: the law of supply.

Q: According to the law of supply, assuming other factors are held constant
- as the price of bread increases, the quantity of bread supplied will decrease.
- as the supply for bread increases, the price of bread will also increase.
- as the price of bread increases, the quantity of bread supplied will increase.
A: as the price of bread increases, the quantity of bread supplied will increase.

Q: According to the law of supply, assuming other factors are held constant
- as the price of milk increases, the quantity of milk supplied will decrease.
- as the supply for milk increases, the price of milk will also increase.
- as the price of milk decreases, the quantity of milk supplied will decrease.
A: as the price of milk decreases, the quantity of milk supplied will decrease.

Q: The owner of a paper manufacturer in Seattle, WA is planning next month’s production goals. Last month the price of a ton of paper was $625, which increased to $840 this month. According to the law of supply, what would be a rational response of the owner to this change in market price for paper?
- Shut down 2 out of the 4 paper pulp machines at the plant.
- Layoff workers and reduce output.
- Hire additional workers and increase output.
A: Hire additional workers and increase output.

Q: The operations vice president is adjusting the production quantities for the upcoming month of March for the coal company. Last month the price of a ton of coal was $45, and in February it increased to $64 per ton. According to the law of supply, what would be a rational response of the VP of operations in adjusting his coal output with the change in the market price?
- Shut down 2 out of the 4 mining sections in the coal mine.
- Reduce output and layoff workers.
- Increase output and hire more workers.
A: Increase output and hire more workers.

Q: In December there is a large demand for evergreen trees. They are sold on city corners and parking lots for Christmas. According to the law of supply, what scenario would you expect to see with the Christmas trees?
- There are bargains and sales in most places selling the trees in order to stimulate demand.
- The demand is decreases in December, so the tree lots are decreasing the number of trees supplied.
- The supply and prices of the trees have increased since October.
A: The supply and prices of the trees have increased since October.

Q: It is the end of the year and party supply stores have added the things needed for a fantastic New Years Eve party. According to the law of supply, what scenario would you expect to see with the party supply stores?
- There are bargains and sales in most places selling the New Year’s supplies to stimulate demand.
- The demand is decreasing in December, so New Year’s party supply stores are decreasing the number of New Year's party supplies.
- The supply and prices of the New Year’s party supplies have increased since November.
A: The supply and prices of the New Year’s party supplies have increased since November.

Q: A supply curve is a graphical illustration of the relationship between price and
- demand.
- quantity demanded.
- quantity supplied.
A: quantity supplied.

Q: A supply curve is a graphical illustration of the relationship between quantity supplied and
- demand.
- quantity demanded.
- price.
A: price.

Q: When economists talk about supply, they are referring to a relationship between the price in a market and the
- equilibrium quantity.
- amount that buyers wish to purchase.
- amount that producers collectively make available for sale.
A: amount that producers collectively make available for sale.

Q: The relationship between the price in a market and the amount that producers collectively make available for sale, is referred to as
- equilibrium quantity.
- quantity supplied.
- supply.
A: supply.

Q: Nearly all supply curves share a basic similarity. They slope
- down from left to right.
- up from right to left.
- up from left to right.
A: up from left to right.

Q: In general, supply curves slope
- downward from left to right.
- upward from right to left.
- upward from left to right.
A: upward from left to right.

Q: Coilmaster Corporation, a machine shop in Tennessee, produces a variety of parts for refrigerators. Recently they increased their prices and supply of parts. The new supply schedule for refrigerators parts is the table below. Which supply curve below has the correct slope of Coilmaster Corp’s parts supply schedule?

Supply and Price of Refrigerator Parts
Price ($) | Quantity Supplied
$400 | 50
$600 | 70
$700 | 90
$800 | 110
$900 | 130
$1,100 | 150
$1,200 | 170
- and ends at (1200,170).)
- and ends at (170,400).)
- and ends at (170,1200).)
A: and ends at (170,1200).)

Q: The regional soda company in Michigan, Faygo, has recently run viral advertisements online and has increased their prices and number of supplied sodas to regional grocery stores. The graph of Faygo’s supply schedule is shown below.

and ends at (170,1200).) Which supply schedule is correct for creating Faygo’s soda supply curve graph?
- Supply and Price of Refrigerator Parts
Price ($) | Quantity Supplied
$400 | 70
$600 | 90
$700 | 110
$800 | 130
$900 | 150
$1,000 | 170
$1,200 | 190
- Price ($) | Quantity Supplied
$400 | 170
$600 | 150
$700 | 130
$800 | 110
$900 | 90
$1,000 | 70
$1,200 | 50
- Price ($) | Quantity Supplied
$400 | 50
$600 | 70
$700 | 90
$800 | 110
$900 | 130
$1,100 | 150
$1,200 | 170
A: Price ($) | Quantity Supplied
$400 | 50
$600 | 70
$700 | 90
$800 | 110
$900 | 130
$1,100 | 150
$1,200 | 170

Q: Looking at the graph, if price was $2.20 per gallon and decreased to $1.60 per gallon, how does quantity supplied of gasoline change?
- 640 million gallons to 720 million gallons
- 720 million gallons to 600 millions gallons
- 720 million gallons to 640 million gallons
A: 720 million gallons to 640 million gallons

Q: Looking at the graph, if price was $1.60 per gallon and increased to $2.20 per gallon, how does quantity supplied of gasoline change?
- 720 million gallons to 640 million gallons
- 600 million gallons to 720 millions gallons
- 640 million gallons to 720 million gallons
A: 640 million gallons to 720 million gallons

Q: Considering the graph for microchips

, if prices decrease from $200 to $150, suppliers will want to
- produce almost 70 more microchips.
- produce half as many microchips.
- produce nearly 70 fewer microchips.
A: produce nearly 70 fewer microchips.

Q: Considering the graph for microchips, if prices increase from $150 to $200, suppliers will want to
- produce nearly 70 fewer microchips.
- produce twice as many microchips.
- produce almost 70 more microchips.
A: produce almost 70 more microchips.

Q: Lian is a production analyst at the cardboard box manufacturer Flexpac. Last year, because of an increase in online shopping, shipping companies have increased the use of boxes for shipping. Management has charged Lian with generating a supply curve graph to illustrate the rise in price and supply of their boxes. These are the figures Lian discovered and put in a table. If you were assisting Lian, what steps would you tell her to take next?

Price ($) | Quantity Supplied
$100 | 100
$125 | 150
$150 | 200
$175 | 250
$200 | 280
$225 | 310
$250 | 350
- Plot these points as a demand curve graph sloping down to the right with price on the y-axis and quantity supplied on the x-axis.
- Plot these points on a graph with graph sloping up to the right quantity supplied on the y-axis and price on the x-axis.
- Plot these points on a graph sloping up to the right with price on the y-axis and quantity supplied on the x-axis.
A: Plot these points on a graph sloping up to the right with price on the y-axis and quantity supplied on the x-axis.

Q: Santiago is a new analyst working to create a supply curve graph. His boss at Legoland asked him to create one to highlight the historical relationship of the price of park tickets and the quantity supplied. Santiago put the identified ticket prices and quantities in a table. He is about to create the graph, but is double checking with you since you’ve created one before. Santiago has put the prices on the x-axis and the quantity supplied on the y-axis. What would you tell him to do next?

Price ($) | Quantity Supplied
$59 | 1000
$67 | 1500
$79 | 2000
$83 | 2500
$97 | 2800
$105 | 3100
$120 | 3500
- Plot these points as a demand curve graph sloping down to the right with price on the y-axis and quantity supplied on the x-axis.
- Plot these points on a graph with graph sloping up to the right keeping quantity supplied on the y-axis and price on the x-axis.
- Plot these points on a graph sloping up to the right with and change it to price on the y-axis and quantity supplied on the x-axis.
A: Plot these points on a graph sloping up to the right with and change it to price on the y-axis and quantity supplied on the x-axis.

Q: Frank has plotted the following points on a supply curve graph from the supply schedule for golf shoe market. Which of the following supply curves accurately reflects Frank’s supply schedule?
Golf Shoes
Price ($" style="max-width: 100%" />
Quantity Supplied

$55
1
$75
2
$100
3
$120
4
$135
5
$155
6
$195
7
- The orange line.
- The silver line.
- The yellow line.
A: The yellow line.

Q: and ends at (7,200). An upward sloping orange line starts at (1,100) and ends at (7,350). A third grey upward sloping line starts at (1,100) and ends at (7,375).) Frank has plotted his supply schedule on a supply curve graph for the golf shoe market. He has also plotted two other competitor’s supply schedules. Which of the following supply schedules accurately reflects Frank’s golf shoe market supply schedule if his business is the yellow supply curve?
- The correct supply schedule has the figures: $100,1 and $150,2 and $200,3 and $250,4 and $280,5 and $310,6 and $350,7.
- The correct supply schedule has the figures: $100,1 and $175,2 and $225,3 and $285,4 and $300,5 and $325,6 and $375,7.
- The correct supply schedule has the figures: $50,1 and $75,2 and $100,3 and $120,4 and $135,5 and $155,6 and $195,7.
A: The correct supply schedule has the figures: $50,1 and $75,2 and $100,3 and $120,4 and $135,5 and $155,6 and $195,7.

Q: A drought decreases the supply of agricultural products. This means that at any given price, a lower quantity will be supplied. Conversely, especially good weather would shift the
- demand curve to the right.
- supply curve to the left.
- supply curve to the right.
A: supply curve to the right.

Q: Good weather and heavy winter rain increases the supply of agricultural products. This means that at any given price, a higher quantity will be supplied. Conversely, a drought would shift the
- demand curve to the right.
- supply curve to the right.
- supply curve to the left.
A: supply curve to the left.

Q: A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of
- the demand curve.
- both the supply and demand curves.
- the supply curve.
A: the supply curve.

Q: Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a rightward shift of
- the demand curve.
- both the supply and demand curves.
- the supply curve.
A: the supply curve.

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

Q: The supply curve will shift to the right if which of the following occurs?
- A new tax imposed on the product.
- Unfavorable natural conditions.
- An improvement in technology.
A: An improvement in technology.

Q: Which of the following will shift the supply curve to the left?
- A change in consumer tastes and preferences.
- Government deregulation of production.
- An increase in the price of inputs to production.
A: An increase in the price of inputs to production.

Q: Which of the following will shift the supply curve to the right?
- A change in consumer tastes and preferences.
- Government regulation of production.
- A decrease in the price of inputs to production.
A: A decrease in the price of inputs to production.

Q: Which of the following will cause the supply curve to shift to the left?
- improved technology
- a fall in input prices
- higher product taxes
A: higher product taxes

Q: Which of the following will cause the supply curve to shift to the right?
- poor natural conditions for production
- an increase in input prices
- lower product taxes
A: lower product taxes

Q: A change in technology that reduces the costs of production will
- increase consumer demand.
- decrease consumer demand.
- shift the supply curve to the right.
A: shift the supply curve to the right.

Q: If a technology change reduces a company’s production costs, it will
- increase consumer demand.
- decrease consumer demand.
- shift the supply curve to the right.
A: shift the supply curve to the right.

Q: When ________, business firms will collectively supply a higher quantity of output at any given price, 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: When ________, business firms will collectively supply a lower quantity of output at any given price, and the supply curve will shift to the left.
- prices decrease
- there is a population decrease
- costs of production increase
A: costs of production increase

Q: The ________ is where quantity demanded and quantity supplied are equal at a certain price.
- surplus
- supply schedule
- equilibrium
A: equilibrium

Q: The point at which quantity demanded equals quantity supplied is called
- market stability.
- supply schedule.
- equilibrium.
A: equilibrium.

Q: If demand increases and supply remains constant, what happens to the market equilibrium?​
- Quantity rises and price falls.
- Quantity and price both fall.
- Quantity and price both rise.
A: Quantity and price both rise.

Q: If demand decreases and supply remains constant, what happens to the market equilibrium?​
- Quantity and price both rise.​
- Quantity and price both fall.
- Quantity rises and price falls.
A: Quantity rises and price falls.

Q: From an initial equilibrium, suppose there’s a decrease in supply. Once the market reaches its new equilibrium, there will be
- more transactions, and they will take place at a lower price.
- fewer transactions, and they will take place at a lower price.
- fewer transactions, and they will take place at a higher price.
A: fewer transactions, and they will take place at a higher price.

Q: From an initial equilibrium, suppose there’s a increase in demand. Once the market reaches its new equilibrium, there will be
- more transactions, and they will take place at a lower price.
- fewer transactions, and they will take place at a higher price.
- more transactions, and they will take place at a higher price.
A: more transactions, and they will take place at a higher price.

Q: When there is an excess supply of goods
- consumers demand more, causing the price to increase.
- the market increases its costs of production.
- suppliers lower prices, which encourages consumers to demand more.
A: suppliers lower prices, which encourages consumers to demand more.

Q: Excess supply will result in suppliers ________ prices, which encourages consumers to demand ________ .
- raising; less
- lowering; less
- lowering; more
A: lowering; more

Q: When there is an excess demand for a good
- consumers demand less, causing the price to increase.
- the market decreases its costs of production.
- suppliers increase prices, causing consumers to purchase less.
A: suppliers increase prices, causing consumers to purchase less.

Q: Excess demand will result in suppliers ________ prices, which encourages demanders to buy ________ .
- lowering; more
- lowering prices; less
- raising prices; less
A: raising prices; less

Q: When the actual price in some market is above the equilibrium price, the resulting market condition is known as
- excess demand.
- price ceiling.
- excess supply.
A: excess supply.

Q: Excess demand occurs when the actual price in some market is ________ the equilibrium price.
- above
- equal to
- below
A: below

Q: In a market with an upward sloping supply curve and a downward sloping demand curve, when there is an excess supply,
- the quantity demanded is higher than the equilibrium quantity.
- the actual price must be lower than the equilibrium price.
- the actual price must be higher than the equilibrium price.
A: the actual price must be higher than the equilibrium price.

Q: In a market with an upward sloping supply curve and a downward sloping demand curve, when the actual price must be higher than the equilibrium price, there will be
- excess demand.
- an increase in the price.
- excess supply.
A: excess supply.

Q: Analyze the following diagram:

At a price of $13, quantity demanded is ________, quantity supplied is ________ ; therefore excess ________ has occurred.
- 45, 27; supply
- 27, 45; demand
- 45, 27; demand
A: 45, 27; demand

Q: Analyze the following diagram:

At a price of $16, quantity demanded is ________, quantity supplied is ________; therefore excess ________ has occurred.
- 5, 35; demand
- 20, 40; supply
- 5, 35; supply
A: 5, 35; supply

Q: Becky is tasked with analyzing the market supply and demand for potatoes. Right now, she plotted the supply and demand curves for potatoes which you see in the graph. The current potato price is $150/ton. If the demand is at 120 million tons, what is the market situation for potatoes? How much must prices change before the market is in equilibrium?
- There is a potato shortage. The price must drop by $40/ton to reach equilibrium.
- There is a potato shortage. The price must increase by $40/ton to reach equilibrium.
- There is a potato surplus. The price must drop by $40/ton to reach equilibrium.
A: There is a potato surplus. The price must drop by $40/ton to reach equilibrium.

Q: Robert is tasked with analyzing the market supply and demand for potatoes. Right now, he plotted the supply and demand curves for potatoes which you see in the graph. The current potato price is $70/ton. If the demand is at 200 million tons, what is the market situation for potatoes? How much must prices change before the market is in equilibrium?
- There is a potato shortage. The price must drop by $40/ton to reach equilibrium.
- There is a potato surplus. The price must drop by $40/ton to reach equilibrium.
- There is a potato shortage. The price must increase by $40/ton to reach equilibrium.
A: There is a potato shortage. The price must increase by $40/ton to reach equilibrium.

Q: Analyze the following diagram:

The equilibrium price and quantity are:
- Pe = $8, Qe = 15
- Pe = $16, Qe = 5
- Pe = $14, Qe = 31
A: Pe = $14, Qe = 31

Q: Analyze the following diagram:

The price at which quantity demanded equals quantity supplied is ________ and the corresponding quantity is ________.
- $16, 35
- $8, 15
- $14, 31
A: $14, 31

Q: The conditions of demand and supply are given in the table below. What is the equilibrium price?

Price | Qd | Qs
$1.60 | 9,000 | 5,000
$2.00 | 8,500 | 5,500
$2.40 | 8,000 | 6,400
$2.80 | 7,500 | 7,500
$3.20 | 7,000 | 9,000
$3.60 | 6,500 | 11,000
$4.00 | 6,000 | 15,000
- $2.40
- $3.20
- $2.80
A: $2.80

Q: The conditions of demand and supply are given in the table below. What is the equilibrium quantity?

Price | Qd | Qs
$1.60 | 9,000 | 5,000
$2.00 | 8,500 | 5,500
$2.40 | 8,000 | 6,400
$2.80 | 7,500 | 7,500
$3.20 | 7,000 | 9,000
$3.60 | 6,500 | 11,000
$4.00 | 6,000 | 15,000
- 7,000
- 6,400
- 7,500
A: 7,500

Q: The marketing manager for the company Doggie Heaven Toys, has a table of prices and quantity demanded of the market for plastic ball throwing sticks for dog owners. He has plotted the quantity supplied upward sloping curve and now must plot the demand curve. Take a look at the table and identify which of the following demand curves will be the correct demand curve for his supply and demand graph.

Dog Ball Thrower Toy Market
Price ($) | Demanded | Supplied
$10 | 25 | 10
$20 | 20 | 20
$30 | 15 | 30
$40 | 10 | 40
$50 | 5 | 50
A: (a choice with no text)

Q: The marketing manager for the company Doggie Heaven Toys, has a table of prices and quantity demanded of the market for plastic ball throwing sticks for dog owners. He has plotted the quantity demanded downward sloping curve and now must plot the supply curve. Take a look at the table and identify which of the following supply curves will be the correct supply curve for his supply and demand graph.

Dog Ball Thrower Toy Market
Price ($) | Demanded | Supplied
$10 | 25 | 10
$20 | 20 | 20
$30 | 15 | 30
$40 | 10 | 40
$50 | 5 | 50
A: (a choice with no text)

Q: You are charged with setting the price for your company’s lawn mower product that has been on the market for a year and is lagging in sales. After researching and discovering the needed data you create a supply and demand curve. Here is what you have discovered.

and ends at (240,250). There is a blue downward sloping line that starts at (70,250) and ends at (240,150).) What sales price should you select to meet the equilibrium price for the lawn mower?
- $185
- $200
- $190
A: $190

Q: Nico is selecting the best quantity supplied for your company’s lawn mower product that has been on the market for a year. After researching and discovering the needed data Nico creates a supply and demand curve graph. Here is what he has discovered.

and ends at (240,250). There is a blue downward sloping line that starts at (70,250) and ends at (240,150).) What is the correct number of lawn mowers Nico should supply the market to meet equilibrium?
- 150
- 120
- 140
A: 140

Q: The market for hot dogs has been recently affected by a decrease in input prices. Following this change, how does the new equilibrium compare to the old?
- Equilibrium price and quantity increase.
- Equilibrium price and quantity decrease
- Equilibrium price decreases and quantity increases.
A: Equilibrium price decreases and quantity increases.

Q: What is the second step of the four-step process?
- Draw the demand and supply curves before the change took place.
- Identify the new equilibrium.
- Determine whether the economic changes affect demand or supply.
A: Determine whether the economic changes affect demand or supply.

Q: A major hurricane is headed towards Southern Florida and as a result panic buying has set in. What would you conclude about the third step of the four step process in this example?
- The new equilibrium price and quantity will both be higher than the original equilibrium.
- The economic change is likely to affect the demand curve.
- The economic change will shift the affected curve rightwards.
A: The economic change will shift the affected curve rightwards.

Q: What is the final step of the four-step process for analyzing changes in equilibrium?
- Identify the direction of change on the affected curve.
- Determine the old equilibrium price and quantity.
- Identify the new equilibrium, and compare it to the old.
A: Identify the new equilibrium, and compare it to the old.

Q: There has been a recent medical study released which confirms that vitamin C can kill off viruses and in fact stops sepsis in hospital patients so they can recover faster. With this new information what do you think will happen to the Vitamin C supplement market?
- There will be a decrease in the quantity demanded.
- There will be an increase only in the quantity demanded.
- There will be a shift if the demand curve as demand increases.
A: There will be a shift if the demand curve as demand increases.

Q: The largest national herbal supplement store is running a sale on its excess supply of Vitamin C supplements. With this new price change what do you think will happen to the Vitamin C supplement market?
- There will be a decrease in the quantity demanded.
- There will be a shift if the demand curve as demand increases.
- There will be an increase only in the quantity demanded.
A: There will be an increase only in the quantity demanded.

Q: Last year the Rocky Mountains received many snow storms and five months of snow which created a large demand in show shovels. This year however, there have been three snow storms and only a few weeks of winter snow. If you were to draw a graph of the current market for snow shovels, how would the new equilibrium price and quantity demanded compare to last year’s market?
- With supply of snow shovels being constant, the equilibrium price and quantity increase for snow shovels compared to last year.
- With supply of snow shovels being constant, equilibrium price decreases and quantity increases for snow shovels compared to last year.
- With supply of snow shovels being constant, equilibrium price and quantity decrease for snow shovels compared to last year.
A: With supply of snow shovels being constant, equilibrium price and quantity decrease for snow shovels compared to last year.

Q: Last year Hawaii did not received many rain storms and with eight months of little rain there was low demand for umbrellas. This year however, there have been three months of big rain storms and only a few weeks of sunny weather. If you were to draw a graph depicting the changing market for umbrellas from last year to this, how would the new equilibrium price and quantity demanded compare to last year’s market?
- With supply of umbrellas being constant, equilibrium price and quantity demanded decrease for umbrellas compared to last year.
- With supply of umbrellas being constant, equilibrium price decreases and quantity demanded increases for umbrellas compared to last year.
- With supply of umbrellas being constant, equilibrium price and quantity demanded increase for umbrellas compared to last year.
A: With supply of umbrellas being constant, equilibrium price and quantity demanded increase for umbrellas compared to last year.

Q: In 2016, after a hundred years of unsuccessful attempts, the Chicago Cubs finally won the baseball World Series. There was a surge in demand for Cubs baseball caps and T-shirts as more people became fans that year. At about the same time there was blight in the cotton fields that reduced the quantity of cotton to make the caps and T-shirts. Describe what the new equilibrium price and quantity is like compared with the prior year’s Cubs caps and T-shirt before the win and the reduced supply of cotton?
- With the demand shifting to the left, and supply shifting to the right, the equilibrium price and quantity for Cubs caps and T-shirts decreased from 2015.
- Supply and demand curves have shifted to the right and the equilibrium price and quantity for Cubs caps and T-shirts has increased since 2015.
- The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price for Cubs caps and T-shirts increased from 2015 and it is impossible to determine the effect on the quantity.
A: The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price for Cubs caps and T-shirts increased from 2015 and it is impossible to determine the effect on the quantity.

Q: In 2018 the NFL football team, the Carolina Panthers, have an owner accused of sexual harassment. The fans’ demand for team jerseys has dropped with the scandal this year. At about the same time the cost to manufacture the jerseys in China increased by 20%. Describe what the new equilibrium price and quantity is like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs?
- Supply and demand curves have shifted to the left and the equilibrium price and quantity for Panthers’ jersey market has decreased since 2017.
- The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price and quantity increased from 2017.
- Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
A: Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.

Q: In 2000, the demand for audio CDs was increasing as more people purchased them to listen to during commute time. Later in the year the price of aluminium (a material used in CDs) decreased. In 2001 the iPod was launched. The new technology began shifting the market and downloading digital audio became a viable substitute for CDs. As digital technology has improved since 2001, downloading audio files continued to increase with the demand for CDs dropping. If you were drawing a supply and demand graph to illustrate the changes to the CD market between 2001 and 2011, what would you say has happened to the market and the equilibrium price and quantity of the CD market since 2001?
- With the demand shifting to the left, and supply shifting to the right, the equilibrium price and quantity for CDs decreased from 2001.
- Supply and demand curves have shifted to the left and the equilibrium price for CDs has decreased since 2001.
- The demand curve shifted to the left, and the supply curve shifted to the right, the equilibrium price for CDs decreased from 2001 and it is impossible to determine the effect on the quantity.
A: The demand curve shifted to the left, and the supply curve shifted to the right, the equilibrium price for CDs decreased from 2001 and it is impossible to determine the effect on the quantity.

Q: Silicon is used for the manufacturing of semiconductor chips. At the end of last year a large new source of silicon has been discovered this year and the price of silicon has decreased by 15%. Semiconductor chips are used in devices, cell phones, gaming systems, and this year many new devices are now using chips. If you were drawing a supply and demand graph to illustrate the changes to the semiconductor market since last year, what would you say has happened to the supply and demand curves and the equilibrium price and quantity this year?
- The supply of semiconductor chips will increase shifting the curve to the right and the demand curve shifts to the left with equilibrium quantity decreasing and the equilibrium price increasing.
- The supply curve will shift to the left and the demand curve shifts to the right with equilibrium quantity increasing and the equilibrium price increasing.
- Both the demand and supply of semiconductor chips will increase shifting the curves to the right with equilibrium quantity increasing but it is impossible to pinpoint the equilibrium price change.
A: Both the demand and supply of semiconductor chips will increase shifting the curves to the right with equilibrium quantity increasing but it is impossible to pinpoint the equilibrium price change.

Q: In 1973 Arab countries imposed an oil embargo on the United States and other developed countries in the aftermath of the Yom Kippur war. At the same time improved infrastructure and increased income was altering consumer preferences in favor of automobiles over public transportation. If you were drawing a supply and demand graph to illustrate the change in the gasoline market in 1973-1974, what would you say has happened to the supply and demand curves and the equilibrium price and quantity during this time period?
- The demand for gasoline will decrease shifting the curve to the left while the supply curve shifts to the right. As a result the equilibrium quantity will increase but it is impossible to pinpoint the equilibrium price change.
- The demand for gasoline will decrease shifting the curve to the left while the supply curve also shifts to the left. As a result the equilibrium price will increase but it is impossible to pinpoint the equilibrium quantity change.
- The supply of gasoline will decrease shifting the curve to the left while the demand curve shifts to the right. As a result the equilibrium price will increase but it is impossible to pinpoint the equilibrium quantity change.
A: The supply of gasoline will decrease shifting the curve to the left while the demand curve shifts to the right. As a result the equilibrium price will increase but it is impossible to pinpoint the equilibrium quantity change.

Q: Soon after America’s declaration of war on Japan the British colony of Malaya was overrun by advancing Japanese military forces. Malaya was the primary source of natural rubber to the US automobile industry before the war. At the same time demand for military vehicles has surged in response to massive government orders. Based on these facts, how would you predict the equilibrium price and quantity of vehicles to change after the fall of Malaya?
- The equilibrium quantity will increase but it impossible to determine the equilibrium price change without additional information.
- Both the equilibrium quantity and price will increase.
- The equilibrium price will increase but it is impossible to determine the equilibrium quantity change without additional information.
A: The equilibrium price will increase but it is impossible to determine the equilibrium quantity change without additional information.

Q: During the 1960s many high-profile studies purported to show a direct link between cigarette consumption and heart disease. In response to these studies the government began to implement higher cigarette taxes as well as other restrictions that increased the cost of doing business for major cigarette manufacturers. How would you expect supply, demand, and the equilibrium price and quantity to change?
- The demand for cigarettes would remain unchanged while supply shifts left. As a result the equilibrium quantity and price will decrease.
- The demand for cigarettes would decrease while supply shifts rightwards. As a result the equilibrium price decreases while equilibrium quantity is impossible to determine with the given information.
- The demand for cigarettes would decrease while supply shifts leftwards. As a result the equilibrium quantity decreases while equilibrium price is impossible to determine with the given information.
A: The demand for cigarettes would decrease while supply shifts leftwards. As a result the equilibrium quantity decreases while equilibrium price is impossible to determine with the given information.

Q: How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate?
- Either supply or demand must increase.
- Supply must increase while demand decreases.
- Both supply and demand must increase.
A: Both supply and demand must increase.

Q: When quantity demanded decreases in response to a change in price
- the demand curve shifts to the right.
- the demand curve shifts to the left.
- there is a movement from one point to another along the demand curve.
A: there is a movement from one point to another along the demand curve.

Q: When quantity demanded increases in response to a change in price
- the demand curve shifts to the right.
- the demand curve shifts to the left.
- there is a movement from one point to another along the demand curve.
A: there is a movement from one point to another along the demand curve.

Q: The cost of leather used to produce leather jackets falls by 30%. This will result in ________.
- an increase in demand
- a decrease in demand
- an increase in the quantity demanded
A: an increase in the quantity demanded

Q: The cost of gasoline used to produce plastics increases by 30%. This will result in ________.
- an increase in demand
- an increase in the quantity demanded
- a decrease in quantity demanded
A: a decrease in quantity demanded

Q: It is the end of the year and holiday sales are beginning. To remain competitive the manufacturers of ice scrapers for cars run a buy two get one free sale on Black Friday. What effect will this have on the ice scraper market?
- This price change will decrease the quantity demanded.
- This decrease in price will increase demand.
- This decrease in price will increase the quantity demanded.
A: This decrease in price will increase the quantity demanded.

Q: This year the cost of iron used in manufacturing cars has increased by 15%. With the costs for manufacturing cars now up, what effect will this have on the car market?
- This will increase the quantity demanded.
- This will increase demand.
- This will decrease the quantity demanded.
A: This will decrease the quantity demanded.

Q: Back in 2008 the app Lightsaber Unleashed was very popular for iPhone users. As the years have gone on however, few updates were made and users lost interest in the app. What effect does the change in user interest have on the demand of the Lightsaber Unleashed app market?
- Loss of interest will decrease the quantity demanded.
- Loss of interest will increase demand.
- Loss of interest will decrease demand.
A: Loss of interest will decrease demand.

Q: There is a tax rebate that everyone in the nation receives from the government of $1000. The market for laptops notices a shift because of this. What effect will this rebate have on the laptop market?
- This will increase the quantity demanded.
- This will decrease the quantity demanded.
- This will increase demand.
A: This will increase demand.

Q: An increase in the quantity supplied can result from
- an increase in supply.
- decreased demand.
- an increase in price.
A: an increase in price.

Q: A decrease in the quantity supplied can result from
- a decrease in supply.
- increased demand.
- a decrease in price.
A: a decrease in price.

Q: Increased competition because of a greater number of producers will cause
- higher prices due to increased supply.
- greater demand in that market.
- lower prices due to an increase in the quantity supplied at every price.
A: lower prices due to an increase in the quantity supplied at every price.

Q: Decreased competition because of fewer producers in a market will cause
- lower prices due to decreased supply.
- less demand in that market.
- higher prices due to an decrease in the quantity supplied at every price.
A: higher prices due to an decrease in the quantity supplied at every price.

Q: This year three manufacturers of mattresses have closed shop and there is only one mattress manufacture left. With few additional competitors what will likely happen to the supply of mattresses?
- The quantity supplied will increase and cause a decrease in price of mattresses.
- The quantity demanded will decrease for mattresses.
- The quantity supplied will decrease and cause an increase in price of mattresses.
A: The quantity supplied will decrease and cause an increase in price of mattresses.

Q: This year nine national retail big box technology companies started and opened many retail stores across the nation. Now there are many more big box retail tech companies in the market. With many more competitors, what will likely happen to the supply of goods in the retail companies’ stores?
- The quantity supplied of goods will decrease and cause an increase in price of of goods.
- The quantity demanded for tech goods will decrease.
- The quantity supplied of goods will increase and cause a decreases in the price of goods.
A: The quantity supplied of goods will increase and cause a decreases in the price of goods.

Q: Coffee from Colombia last year was supplied at $9 per 10 pounds. This year the demand has decreased and that same supply of Colombia coffee is priced at $6 per 10 pounds. What will happen to supply of Colombian coffee this year?
- The supply curve will shift to the right.
- There will be an increase in quantity supplied.
- There will be a decrease in quantity supplied.
A: There will be a decrease in quantity supplied.

Q: Cocoa nibs from Nigeria last year was supplied at $9 per 10 pounds. This year the demand has increased and that same supply of Nigerian cocoa nibs is priced at $12 per 10 pounds. What will most likely happen to supply of Nigerian cocoa nibs this year?
- The supply curve will shift to the left.
- There will be a decrease in quantity supplied.
- There will be an increase in quantity supplied.
A: There will be an increase in quantity supplied.