Combining Supply And Demand Ch. 6

40 Questions | Total Attempts: 129

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Supply Quizzes & Trivia

This quiz assesses your knowledge over supply and demand, role of prices, shifts in market equilibrium, and the reasons for those shifts. Using notes will lower the highest possible grade to a B.


Questions and Answers
  • 1. 
      Price per slice of pizza Quantity Demanded Quantity Supplied Surplus or Shortage  Point $2.00 25 175    A $1.75 50 150    B $1.50 75 125    C $1.25 100 100    D $1.00 125 75    E At which point does the market reach equilibrium?
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

    • E. 

      E

  • 2. 
      Price per slice of pizza Quantity Demanded Quantity Supplied Surplus or Shortage  Point $2.00 25 175    A $1.75 50 150    B $1.50 75 125    C $1.25 100 100    D $1.00 125 75    E At which point(s) does a surplus exist?
    • A. 

      A and B

    • B. 

      A,B,and C

    • C. 

      D and E

    • D. 

      A and D

    • E. 

      E

  • 3. 
      Price per slice of pizza Quantity Demanded Quantity Supplied Surplus or Shortage  Point $2.00 25 175    A $1.75 50 150    B $1.50 75 125    C $1.25 100 100    D $1.00 125 75    E On the graph you created, draw the effect that a new technology that makes pizza automatically (without workers) would have on the pizza market.  Be sure to label the new equilibrium price and quantity.    BE SURE TO SHOW YOUR TEACHER THE GRAPHS PRIOR TO Submitting EXAM
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

    • E. 

      E

  • 4. 
      Price per slice of pizza Quantity Demanded Quantity Supplied Surplus or Shortage  Point $2.00 25 175    A $1.75 50 150    B $1.50 75 125    C $1.25 100 100    D $1.00 125 75    E On the graph you created, draw the effect that a new technology that makes pizza automatically (without workers) would have on the pizza market.  Be sure to label the new equilibrium price and quantity.   BE SURE TO SHOW YOUR TEACHER THE GRAPHS PRIOR TO Submitting EXAM
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

    • E. 

      E

  • 5. 
      Price per slice of pizza Quantity Demanded Quantity Supplied Surplus or Shortage  Point $2.00 25 175    A $1.75 50 150    B $1.50 75 125    C $1.25 100 100    D $1.00 125 75    E On the graph you created, draw the effect that a new technology that makes pizza automatically (without workers) would have on the pizza market.  Be sure to label the new equilibrium price and quantity.   BE SURE TO SHOW YOUR TEACHER THE GRAPHS PRIOR TO Submitting EXAM
    • A. 

      A

    • B. 

      B

    • C. 

      C

    • D. 

      D

    • E. 

      E

  • 6. 
    Point at which quantity demanded equals the same amount as quantity supplied is called:
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Equilibrium

    • D. 

      Disequilibrium

    • E. 

      Price floor

    • F. 

      Surplus

  • 7. 
    When quantity supplied does not equal quantity demanded the market is what?
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Equilibrium

    • D. 

      Disequilibrium

    • E. 

      Surplus

  • 8. 
    When quantity demanded is more than quantity supplied
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Surplus

  • 9. 
    The maximum price that can be charged legally for a good is called
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Disequilibrium

    • D. 

      Price floor

    • E. 

      Minimum wage

  • 10. 
    The government set price floor on the earnings for workers is called:
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Disequilibrium

    • D. 

      Price floor

    • E. 

      Minimum wage

    • F. 

      Rent control

  • 11. 
    The amount of a product that cannot be sold at a given price is called
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Equilibrium

    • D. 

      Disequilibrium

    • E. 

      Price floor

    • F. 

      Minimum wage

    • G. 

      Rent control

    • H. 

      Surplus

  • 12. 
    Given an upward slopping supply curve, a rightward shift of the demand curve
    • A. 

      Decreases both equilibrium price and quantity

    • B. 

      Increases both equilibrium price and quantity

    • C. 

      Decreases equilibrium price only

    • D. 

      Increases equilibrium price only

  • 13. 
    When price is set above equilibrium this will result in: 
    • A. 

      Price ceiling

    • B. 

      Shortage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Surplus

  • 14. 
    A market is always in a state of equilibrium. 
    • A. 

      True

    • B. 

      False

  • 15. 
    A price below a product's equilibrium price will result in a shortage of the product
    • A. 

      True

    • B. 

      False

  • 16. 
    A shift in the demand curve results from a change in price of the good. 
    • A. 

      True

    • B. 

      False

  • 17. 
    Each of the following will cause the demand for butter to increase except
    • A. 

      An increase in the price of margarine

    • B. 

      A scientific study that shows butter is good for people's health

    • C. 

      An increase in the number of people who are unemployed

    • D. 

      An increase in the number of people who are willing and able to purchase butter

  • 18. 
    Each of the following will cause supply for a good to increase except:
    • A. 

      A government subsidy to the industry producing the good

    • B. 

      A government excise tax on that good

    • C. 

      A new lower cost source of electric power that is used to make that good

    • D. 

      The industry invests in new technology that reduce the cost of production.

  • 19. 
    Suppose the current equilibrium price for gasoline is $3.65 a gallon.  The government decides to impose a price ceiling of $2.00 a gallon.  This will cause:
    • A. 

      The quantity demanded to decrease and the quantity supplied to decrease

    • B. 

      The quantity demanded to decrease and the quantity supplied to increase

    • C. 

      The quantity demanded to increase and the quantity supplied to increase

    • D. 

      The quantity demanded to increase and the quantity supplied to decrease

  • 20. 
    Predict how the equilibrium price of coffee would be affected by the following change:  Poor growing conditions for coffee beans (demand remains constant)
    • A. 

      Equilibrium price would decrease

    • B. 

      Equilibrium price would increase

    • C. 

      Equilibrium price would remain constant

    • D. 

      Equilibrium quantity would increase

  • 21. 
    A consumers demand of this type of good  will decrease as his or her income increases. 
    • A. 

      Normal Good

    • B. 

      Inferior Good

    • C. 

      Substitution Effect

    • D. 

      Complementary Good

    • E. 

      Income effect

  • 22. 
    For a ____________, a consumer's demand will increase as his or her income increases. 
    • A. 

      Normal Good

    • B. 

      Inferior Good

    • C. 

      Substitution Effect

    • D. 

      Law of Demand

    • E. 

      Income effect

  • 23. 
    When the price of a haircut was raised from $12 to $16, the number of hair cuts sold each day fell from 20 to 13.  What is the elasticity of demand for haircuts.
    • A. 

      Elastic

    • B. 

      Inelastic

    • C. 

      Unitariy elastic

  • 24. 
    Demand indicates how much of a product a consumer _____________  buy at a given price all other things constant.
    • A. 

      Is willing and able to

    • B. 

      Wants to and will

    • C. 

      Wants and needs

    • D. 

      Are able to

  • 25. 
    Which of the following is false about demand curves?
    • A. 

      They normally slope down from left to right

    • B. 

      They show the relationship between price and the quantity demanded

    • C. 

      They can slope down from the right to the left