Deck 2: Demand and Supply

Question 1

If the price of peanut butter increases, which of the following will occur?

A)The demand curve for peanut butter will shift to the left.
B)Consumers will experience an increase in their purchasing power.
C)There will be a movement up the demand curve for peanut butter.
D)The demand curve for peanut butter will shift to the right.

Answer 1

C

Question 2

If an increase in consumers' incomes results in a leftward shift of the demand curve for a good, which of the following is true?

A)The good has an upward sloping demand curve.
B)The good is a normal good.
C)The demand for the good does not follow the Law of Demand.
D)The good is an inferior good.

Answer 2

D

Question 3

If the price of ground beef decreases, which of the following will occur?

A)The demand curve for ground beef will shift to the left.
B)Consumers will experience a decrease in their purchasing power.
C)There will be a movement down the demand curve for ground beef.
D)The substitution effect will cause some consumers to switch to other types of meat.

Answer 3

C

Question 4

Which of the following will cause a movement down the demand curve for frozen chicken nuggets?

A)an increase in the price of frozen chicken nuggets
B)a decrease in consumer incomes
C)an increase in consumer incomes
D)a decrease in the price of frozen chicken nuggets

Question 5

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)an increase in the price of a substitute for Good Z
B)a decrease in the expected future price of Good Z
C)a decrease in the price of a complement for Good Z
D)an increase in the number of demanders for Good Z

Question 6

If Goods X and Y are substitutes, if the price of Good X increases, this will cause a movement the demand curve for Good X and a _ shift in the demand for Good Y.

A)up; leftward
B)down; rightward
C)down; leftward
D)up; rightward

Question 7

The demand function for Super Big Bright LED light bulbs is Qd = (45 million)- (3.5 million × P). The company is currently charging a price of $8 per bulb, but is considering increasing the price to $10. How will the increase in price affect the quantity demanded?

A)Consumers will increase the quantity demanded by 10 million.
B)Consumers will increase the quantity demanded by 7 million.
C)Consumers will decrease the quantity demanded by 7 million.
D)Consumers will decrease the quantity demanded by 10 million.

Question 8

Which of the following will cause a movement up the demand curve for digital printing services?

A)a decrease in consumer incomes
B)an increase in consumer incomes
C)an increase in the price of digital printing services
D)a decrease in the price of digital printing services

Question 9

For any demand function, which of the following represents the dependent variable?

A)the price of a substitute good
B)consumer incomes
C)the price of the good
D)the quantity demanded of a good

Question 10

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)a decrease in the price of a substitute for Good Z
B)an increase in the price of Good Z
C)an increase in the expected future price of Good Z
D)a decrease in income if Good Z is an inferior good

Question 11

Which of the following will cause a movement along the demand curve for apple juice?

A)an expected change in the future price of apple juice
B)an increase in the price of apple juice
C)a change in the price of orange juice, a substitute for apple juice
D)a decrease in consumer incomes

Question 12

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)a decrease in the price of a substitute for Good Z
B)an increase in the price of a complement for Good Z
C)a decrease in income if Good Z is an inferior good
D)a decrease in the price of Good Z

Question 13

If Goods X and Y are complements, if the price of Good X decreases, this will cause a movement the demand curve for Good X and a _ shift in the demand for Good Y.

A)down; leftward
B)up; rightward
C)up; leftward
D)down; rightward

Question 14

If Goods X and Y are substitutes, if the price of Good X decreases, this will cause a movement the demand curve for Good X and a _ shift in the demand for Good Y.

A)up; leftward
B)up; rightward
C)down; leftward
D)down; rightward

Question 15

The demand function for Super Big Bright LED light bulbs is Qd = (45 million)- (3.5 million × P). If the company charged a price of $8 per bulb, how many will be demanded?

A)17 million
B)41.5 million
C)37 million
D)10 million

Question 16

The demand function for a pack of four Never Die Batteries is Qd = (62 million)- (8 million × P). If the company charged a price of $5 per package, how many packages will be demanded?

A)102 million
B)54 million
C)8 million
D)22 million

Question 17

The demand function for a pack of four Never Die Batteries is Qd = (62 million)- (8 million × P). The company is currently charging a price of $5 per package, but is considering decreasing the price to $4. How will the decrease in price affect how many packages of batteries consumers will buy?

A)Consumers will decrease the quantity demanded by 30 million.
B)Consumers will increase the quantity demanded by 30 million.
C)Consumers will decrease the quantity demanded by 8 million.
D)Consumers will increase the quantity demanded by 8 million.

Question 18

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)an increase in the price of a substitute for Good Z
B)a decrease in the expected future price of Good Z
C)a decrease in the price of Good Z
D)an increase in income if Good Z is an inferior good

Question 19

For demand functions, which of the following cannot be an independent variable?

A)consumer incomes
B)the price of the good in question
C)the quantity demanded of a good
D)the price of a substitute good

Question 20

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)an increase in the price of Good Z
B)an increase in the price of a substitute for Good Z
C)an increase in income if Good Z is an inferior good
D)a decrease in the price of a complement for Good Z

Question 21

If Goods X and Y are substitutes in production, if the price of Good X increases, this will cause a the supply curve for Good X and a the supply curve for Good Y.

A)movement along; shift in
B)shift in; shift in
C)shift in; movement along
D)movement along; movement along

Question 22

If Goods X and Y are substitutes in production, if the price of Good X decreases, this will cause a the supply curve for Good X and a the supply curve for Good Y.

A)shift in; shift in
B)shift in; movement along
C)movement along; movement along
D)movement along; shift in

Question 23

If a decrease in the price of Good X causes the demand for Good Y to shift rightward, Goods X and Y are complements.

Question 24

If Goods R and S are complements in production, if the price of Good R increases, this will cause a(n)_ the supply curve for Good S.

A)upward movement along
B)rightward shift in
C)leftward shift in
D)downward movement along

Question 25

The supply function for a half gallon of Happy Cow Milk is QS = (0)+ (2 million × P). If the company charged a price of $3.5 per half gallon, how many half gallons will be supplied?

A)7 million
B)0
C)3.5 million
D)2 million

Question 26

The supply function for a pack of four Never Die Batteries is QS = (0)+ (6 million × P). If the price of a package of four Never Die Batteries increases by $1, how will this change the quantity supplied?

A)increase by 1 million
B)increase by 6 million
C)decrease by 6 million
D)decrease by 1 million

Question 27

A news report discussing a medical study that found conclusive evidence of the positive health benefits of farm- raised eggs is likely to cause a rightward shift of the demand curve for
farm- raised eggs.

Question 28

An increase in the number of demanders for a good will cause a downward movement along the demand curve.

Question 29

If the price of avocados increases, which of the following will occur?

A)There will be a movement down the supply curve for avocados.
B)The supply curve for avocados will shift to the right.
C)There will be a movement up the supply curve for avocados.
D)The supply curve for avocados will shift to the left.

Question 30

If Goods X and Y are substitutes in production, if the price of Good X increases, this will cause a movement the supply curve for Good X and a shift in the supply curve for Good Y.

A)up; leftward
B)down; leftward
C)down; rightward
D)up; rightward

Question 31

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)a decrease in the price of a complement for Good Z
B)an increase in the price of Good Z
C)a decrease in income if Good Z is a normal good
D)a decrease in the price of Good Z

Question 32

Which of the following will cause a movement down the supply curve for frozen chicken nuggets?

A)a decrease in the price of frozen chicken nuggets
B)a decrease in the expected future price of frozen chicken nuggets
C)an increase in the number of suppliers of frozen chicken nuggets
D)a decrease in the cost to produce frozen chicken nuggets

Question 33

If an increase in the price of Good X causes the demand for Good Y to shift rightward, Goods X and Y are complements.

Question 34

If the price of tomato juice decreases, which of the following will occur?

A)The supply curve for tomato juice will shift to the left.
B)There will be a movement up the supply curve for tomato juice.
C)The supply curve for tomato juice will shift to the right.
D)There will be a movement down the supply curve for tomato juice.

Question 35

If Goods R and S are complements in production, if the price of Good R decreases, this will cause a(n)_ the supply curve for Good S.

A)rightward shift in
B)downward movement along
C)upward movement along
D)leftward shift in

Question 36

The supply function for a pack of four Never Die Batteries is QS = (0)+ (6 million × P). If the company charged a price of $5 per package, how many packages will be supplied?

A)0
B)22 million
C)6 million
D)30 million

Question 37

The Law of Demand states that as consumers' incomes increase, the demand for normal goods increase.

Question 38

If Goods X and Y are substitutes in production, if the price of Good X decreases, this will cause a movement the supply curve for Good X and a shift in the supply curve for Good Y.

A)up; rightward
B)up; leftward
C)down; rightward
D)down; leftward

Question 39

The supply function for a half gallon of Happy Cow Milk is QS = (0)+ (2 million × P). If the price of a Happy Cow Milk decreases by $1, how will this change the quantity supplied?

A)decrease by 2 million
B)increase by 2 million
C)decrease by 1 million
D)increase by 1 million

Question 40

Refer to the figure above. Which of the following could have caused the shift in the demand curve?

A)an increase in the price of Good Z
B)an increase in the price of a complement for Good Z
C)an increase in the expected future price of Good Z
D)a decrease in income if Good Z is an inferior good

Question 41

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)a technological advancement in the production of Good R
B)a bad state of nature for the production of Good R
C)an increase in the price of a complement good in production
D)a decrease in the expected future price of Good R

Question 42

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)a decrease in the price of a substitute good in production
B)an increase in the cost of producing Good R
C)an increase in the number of sellers of Good R
D)an increase in the price of Good R

Question 43

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)a bad state of nature for the production of Good R
B)a decrease in the price of a complement good in production
C)a decrease in the number of sellers of Good R
D)a decrease in the price of a substitute good in production

Question 44

An increase in the price of Good R will cause a movement upward on the supply curve for Good R.

Question 45

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)a technological advancement in the production of Good R
B)a decrease in the expected future price of Good R
C)a decrease in the cost of producing Good R
D)a decrease in the price of a complement good in production

Question 46

Refer to the figure above. All of the following except which one could have caused the shift in the supply curve?

A)a decrease in the number of sellers of Good R
B)an increase in the price of a complement good in production
C)an increase in the price of a substitute good in production
D)an increase in the cost of producing Good R

Question 47

If Goods Y and Z are complements in production, the increase in the price of Good Y will shift the supply curve for Good Z to the right.

Question 48

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)a bad state of nature for the production of Good R
B)a decrease in the cost of producing Good R
C)an increase in the price of Good R
D)an increase in the price of a substitute good in production

Question 49

If there is a surplus in the market, market forces will drive the quantity supplied to and the quantity demanded to _ .

A)increase; decrease
B)decrease; increase
C)decrease; decrease
D)increase; increase

Question 50

At any price higher than the equilibrium price, a in quantity will be created and at any price lower than the equilibrium price, a _ in quantity will be created.

A)shortage; surplus
B)surplus; shortage
C)surplus; surplus
D)shortage; shortage

Question 51

A bad growing season for avocados will result in _.

A)an upward movement along the supply curve
B)a rightward shift of the supply curve
C)a downward movement along the supply curve
D)a leftward shift of the supply curve

Question 52

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)a decrease in the price of Good R
B)an increase in the number of sellers of Good R
C)an increase in the cost of producing Good R
D)an increase in the price of a substitute good in production

Question 53

At the equilibrium price, which of the following is true?

A)The quantity demanded equals the quantity supplied.
B)There is a shortage of the product.
C)The quantity demanded exceeds the quantity supplied.
D)The quantity supplied exceeds the quantity demanded.

Question 54

Only a change in the price of almonds will cause a movement along the supply curve of almonds.

Question 55

A technological advancement in the production of LED light bulbs will result in .

A)a downward movement along the supply curve
B)an upward movement along the supply curve
C)a leftward shift of the supply curve
D)a rightward shift of the supply curve

Question 56

In terms of production, cost and price are the same.

Question 57

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)an increase in the price of a substitute good in production
B)a decrease in the price of Good R
C)an increase in the price of a complement good in production
D)an increase in the expected future price of Good R

Question 58

Refer to the figure above. All of the following except which one could have caused the shift in the supply curve?

A)an increase in the price of Good R
B)a good state of nature for the production of Good R
C)a decrease in the cost of producing Good R
D)an increase in the number of sellers of Good R

Question 59

Refer to the figure above. Which of the following could have caused the shift in the supply curve?

A)an increase in the price of a substitute good in production
B)a good state of nature for the production of Good R
C)a decrease in the price of Good R
D)a decrease in the cost of producing Good R

Question 60

If Goods R and S are complements in production, if the price of Good R increases, both the supply curve for Good R and Good S will shift.

Question 61

Refer to the figure above. At a price of $70, which of the following is true?

A)The quantity demanded exceeds the quantity supplied.
B)The quantity supplied exceeds the quantity demanded.
C)There is a shortage of the sunglasses.
D)The quantity demanded equals the quantity supplied.

Question 62

If the equilibrium price for a half gallon of organic milk is $4 and the current price for a half gallon of milk is $5.25, all of the following are true except which one?

A)Market forces will cause the current price to fall.
B)The quantity supplied exceeds the quantity demanded.
C)There is a surplus in the market.
D)There is a shortage in the market.

Question 63

If the Qd = (18 million)- (3 million × P)and QS = (0)+ (3 million × P), the equilibrium quantity for the product is .

A)18 million
B)6 million
C)3 million
D)9 million

Question 64

If the Qd = (20 million)- (2 million × P)and QS = (0)+ (3 million × P), the equilibrium price for the product is .

A)$2
B)$3
C)$5
D)$4

Question 65

If the equilibrium price for a half gallon of organic milk is $4 and the current price for a half gallon of milk is $3.25, all of the following are true except which one?

A)Market forces will cause the current price to increase.
B)There is a surplus in the market.
C)The quantity demanded exceeds the quantity supplied.
D)There is a shortage in the market.

Question 66

Refer to the figure above. At a price of $50, which of the following is true?

A)The quantity demanded exceeds the quantity supplied
B)The quantity supplied exceeds the quantity demanded.
C)The quantity demanded equals the quantity supplied.
D)There is a shortage of the sunglasses.

Question 67

If the Qd = (40 million)- (8 million × P)and QS = (10 million)+ (2 million × P), the equilibrium price for the product is .

A)$8
B)$12
C)$3
D)$2

Question 68

Refer to the figure above. If the price of sunglasses is currently $30, market forces will cause the quantity supplied to _ and the quantity demanded to until the price is equal to the equilibrium price.

A)increase; increase
B)decrease; decrease
C)increase; decrease
D)decrease; increase

Question 69

If the equilibrium price for a half gallon of organic milk is $4 and the current price for a half gallon of milk is $5.25, market forces will cause all of the following to occur except which one?

A)the quantity supplied to increase
B)the quantity demanded to increase
C)the price to fall to the equilibrium price
D)the quantity supplied to decrease

Question 70

If the Qd = (20 million)- (2.5 million × P)and QS = (0)+ (2.5 million × P), the equilibrium quantity for the product is .

A)2.5 million
B)10 million
C)5 million
D)20 million

Question 71

If the Qd = (12 million)- (1 million × P)and QS = (2 million)+ (1 million × P), the equilibrium price for the product is .

A)$5
B)$1
C)$12
D)$2

Question 72

If the equilibrium price for a half gallon of organic milk is $4 and the current price for a half gallon of milk is $3.25, market forces will cause all of the following to occur except which one?

A)the quantity demanded to decrease
B)the price to rise to the equilibrium price
C)the quantity supplied to increase
D)the quantity supplied to decrease

Question 73

If there is a shortage in the market, market forces will drive the quantity supplied to and the quantity demanded to _ .

A)decrease; decrease
B)increase; decrease
C)decrease; increase
D)increase; increase

Question 74

For a particular product the Qd = (20 million)- (2.5 million × P)and QS = (0)+ (2.5 million × P). If the current price is $5, which of the following is true?

A)The current price is equal to the equilibrium price.
B)There is a shortage of the product in the market.
C)There is a surplus of the product in the market.
D)The quantity demanded equals the quantity supplied.

Question 75

If the Qd = (18 million)- (3 million × P)and QS = (0)+ (3 million × P), the equilibrium price for the product is .

A)$10
B)$3
C)$6
D)$8

Question 76

Refer to the figure above. If the price of sunglasses is currently $70, market forces will cause the quantity supplied to _ and the quantity demanded to until the price is equal to the equilibrium price.

A)decrease; decrease
B)increase; decrease
C)increase; increase
D)decrease; increase

Question 77

For a particular product the Qd = (45 million)- (3 million × P)and QS = (0)+ (2 million × P). If the current price is $7, which of the following is true?

A)The current price is equal to the equilibrium price.
B)There is a surplus of the product in the market.
C)The quantity demanded equals the quantity supplied.
D)There is a shortage of the product in the market.

Question 78

If the Qd = (50 million)- (4 million × P)and QS = (2 million)+ (4 million × P), the equilibrium price for the product is .

A)$4
B)$2
C)$6
D)$10

Question 79

Refer to the figure above. At a price of $30, which of the following is true?

A)There is a surplus of the sunglasses.
B)The quantity supplied exceeds the quantity demanded.
C)The quantity demanded exceeds the quantity supplied.
D)The quantity demanded equals the quantity supplied.

Question 80

If the Qd = (50 million)- (4 million × P)and QS = (0)+ (1 million × P), the equilibrium price for the product is .

A)$4
B)$1
C)$5
D)$10