Transcript Practice questions for Supply and Demand

Practice Questions for Supply
and Demand
Changing which of the following
would not shift the demand curve?
a.
b.
c.
d.
e.
Price of the product
Income of the buyers
Prices of substitutes
Prices of complements
All would shift the curve
Consumers are willing to purchase
more cars as the price of cars falls.
Graphically this is represented by:
a. A movement downward along the demand
curve
b. A movement upward along the demand
curve
c. A rightward shift in demand
d. A leftward shift in demand
A technological improvement that
lowers the cost of production is likely to
cause the supply curve
a.
b.
c.
d.
To shift to the left
To shift to the right
Become less responsive to price change
Remain the same
If supply of an item increases while
demand remains the same, the new
equilibrium price will
a.
b.
c.
d.
Stay the same
Increase
Decrease
Move left
Draw a supply and demand graph.
Chart equilibrium
Increase demand
What happens to P and Q?
Draw a graph indicating a ceiling
price of $3.00.
If Dominos decides to buy a new
oven which would allow them
to cook more pizza per hour,
what would their supply curve
look like?
WHAT HAPPENS TO THE SUPPLY
CURVE IF THE FOLLOWING
OCCURS?
In the production of cedar chests
1. The cost of nails increases?
2. A new saw is discovered to cut cedar
quicker
3. The government requires every soldier in
the army is to send home a cedar chest
What happens to demand if the
following happens?
1. Personal income decreases
2. You decide to go on the Atkins diet. What
happens to your demand for pasta?
3. You are a salad lover, and the price of
lettuce goes down.
Draw the proper corresponding
graph
A hurricane hits Florida. Much damage
ensues. The roofing business is suddenly an
opportunity to make lots of money.
Demand for roofing in Florida?
Supply of roofing in Florida?
Price of roofing in Florida?
Price of roofing in Texas?
• . If Joey goes surfing for four hours instead
of earning $10 per hour for those four
hours, his opportunity cost is:
• a. the good time spent surfing
• b. the cost of gasoline used to get to the
beach
• c. the travel time to the beach
• d. $40
. Which of the following causes a movement
along a supply curve?
•
•
•
•
•
a. a change in the resource costs.
b. a change in technology
c. a change in the price
d. all of the above