Combining Supply And Demand

45 Questions | Total Attempts: 182

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Supply Quizzes & Trivia

Questions and Answers
  • 1. 
    When quantity demanded equals quantity supplied
    • A. 

      Price ceiling

    • B. 

      Minimum wage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Shortage

    • F. 

      Rent control

    • G. 

      Surplus

    • H. 

      Disequilibrium

  • 2. 
    When quantity supplied is not equal to quantity demanded
    • A. 

      Price ceiling

    • B. 

      Minimum wage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Shortage

    • F. 

      Rent control

    • G. 

      Surplus

    • H. 

      Disequilibrium

  • 3. 
    When quantity demanded is more than quantity supplied
    • A. 

      Price ceiling

    • B. 

      Minimum wage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Shortage

    • F. 

      Rent control

    • G. 

      Surplus

    • H. 

      Disequilibrium

  • 4. 
    A maximum legal price that can be charged for a good
    • A. 

      Price ceiling

    • B. 

      Minimum wage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Shortage

    • F. 

      Rent control

    • G. 

      Surplus

    • H. 

      Disequilibrium

  • 5. 
    A government set price floor on the earnings of workers
    • A. 

      Price ceiling

    • B. 

      Minimum wage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Shortage

    • F. 

      Rent control

    • G. 

      Surplus

    • H. 

      Disequilibrium

  • 6. 
    The amount of a product that cannot be sold at a given price
    • A. 

      Price ceiling

    • B. 

      Minimum wage

    • C. 

      Equilibrium

    • D. 

      Price floor

    • E. 

      Shortage

    • F. 

      Rent control

    • G. 

      Surplus

    • H. 

      Disequilibrium

  • 7. 
    The sale and purchase of goods done in a way that avoids government controls on price and quantity supplied is called:
    • A. 

      Rationing

    • B. 

      Black market

    • C. 

      Supply shock

    • D. 

      Equilibrium

  • 8. 
    Often due to natural disasters, a sudden shortage of a good is called:
    • A. 

      Supply shock

    • B. 

      Surplus

    • C. 

      Equilibrium

    • D. 

      Black market

  • 9. 
    In general, what happens to the price of a good or service when a shortage of that good or service occurs?
    • A. 

      It remains unchanged while quantity demanded drops

    • B. 

      It increases until quantity demanded equals quantity supplied

    • C. 

      A price ceiling is set by the government, lowering the price to meet the demand

    • D. 

      It decreases until quantity demanded equals quantity supplied

  • 10. 
    What happens when a market is in disequilibrium and prices are flexible?
    • A. 

      Market forces push toward equilibrium

    • B. 

      Sellers wates their resources

    • C. 

      Excess demand is created

    • D. 

      Unsold goods are thrown out

  • 11. 
    Why does a government place price ceilings, such as rent control, on some "essential" goods?
    • A. 

      To prevent the development of a black market when the supply of a good increases

    • B. 

      To encourage an increase in supply of necessary items when the price of a good decreases

    • C. 

      As an attempt to make these goods affordable for all consumers by limiting the impact of a shortage on price

    • D. 

      To help reduce the demand of these goods when price increases

  • 12. 
    What happens to the price of a good or service when there is excess demand?
    • A. 

      The price stays the same

    • B. 

      The price goes up

    • C. 

      The government sets the price

    • D. 

      The price goes down

  • 13. 
    If a baker's supply of bread exceeds the demand for bread, he should:
    • A. 

      Stop selling bread

    • B. 

      Sell only bread

    • C. 

      Lower the price of bread

    • D. 

      Raise the price of bread

  • 14. 
    How did an improvement in the technology for producing digital cameras affect the digital camera market?
    • A. 

      The supply curve shifted to the left

    • B. 

      The supply curve shifted to the right

    • C. 

      The demand curve shifted to the right

    • D. 

      The demand curve shifted to the left

  • 15. 
    How did the market react to an increased supply of digital cameras?
    • A. 

      Suppliers struggled to keep up with consumer demand for cameras

    • B. 

      Manufacturers produced fewer cameras

    • C. 

      Suppliers increased prices on the cameras

    • D. 

      A surplus of cameras forced suppliers to reduce prices

  • 16. 
    What does a company generally do when demand for its goods goes up?
    • A. 

      It rations goods

    • B. 

      It lowers prices

    • C. 

      It raises prices

    • D. 

      There is no set response

  • 17. 
    What happens to the equilibrium price when supply goes down?
    • A. 

      The price goes up

    • B. 

      The price goes down

    • C. 

      The price stays the same

    • D. 

      The prices goes up, and then goes down

  • 18. 
    During World War II, the United States used rationing to
    • A. 

      Limit production agricultural goods

    • B. 

      Meet shortages of goods that could be used in the war effort

    • C. 

      Give away goods that could not be used in the war effort

    • D. 

      Stop the black market of oil and steel

  • 19. 
    How are prices a signal to producers?
    • A. 

      When the price is low it tells producers that too much is being produced

    • B. 

      When the price is low it tells producers that not enough is being produced

  • 20. 
    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 might purchase butter

  • 21. 
    Each of the following will cause supply to increase except
    • A. 

      Workers are trained to be more efficient

    • B. 

      A new lower cost source of electric power is found

    • C. 

      Firms invest in new technology that reduce their costs of production

    • D. 

      A number of experienced workers retire and are replaced by new workers

  • 22. 
    Suppose that the current equilibrium price for natural gas is $1.05 per thousand cubic feet.  The government decides to impose a price ceiling of $.90 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 decrease

    • D. 

      The quantity demanded to increase and the quantity supplied to increase

  • 23. 
    An excise tax increases the cost of production for tobacco and results in the supply curve to shift to the left
    • A. 

      True

    • B. 

      False

  • 24. 
    Predict how the equilibrium price of coffee would be affected by the following changes: Draw a supply and demand curve and show the work.  Poor growing conditions for coffee beans (demand remains constant)
    • A. 

      Supply curve shifts to the right, results in an increase in the equilibrium price

    • B. 

      Supply curve shifts to the left. Results in an increase in the equilibrium price.

    • C. 

      Demand curve shifts to the right. Results in an increase in the equilibrium price.

    • D. 

      Demand curve shifts to the left. Results in an increase in the equilibrium price

  • 25. 
    Predict how the equilibrium price of coffee would be affected by the following changes: Draw a supply and demand curve and show the work.  A major advertising campaign in the United States claims that coffee increases brain development in teenagers.
    • A. 

      Supply curve shifts to the right, results in an increase in the equilibrium price

    • B. 

      Supply curve shifts to the left. Results in an increase in the equilibrium price.

    • C. 

      Demand curve shifts to the right. Results in an increase in the equilibrium price.

    • D. 

      Demand curve shifts to the left. Results in an increase in the equilibrium price

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