Supply and Demand Class Review

Front

What will happen to the price of candy on November 1, if there were a huge storm in the area and it didn't allow for shopping in the days leading up to (and the day of) Halloween?

Back

The price would fall to move the excess supply of candy.

Front

During a natural disaster, such as a hurricane, if the government enacts price controls (such as anti-gouging rules), what will MOST LIKELY result?

Back

Rooms will be hard or impossible to find.

Front

What would be the situation if the price was moved from p2 to p3?

Back

there would be a shortage of widgets

Front

Using the supply and demand curve, which statement is TRUE? By decreasing the price from $3.50 (P1) to $1.60 (P2), the quantity of supply decreases.

Back

By decreasing the price from $3.50 (P1) to $1.60 (P2), the quantity of supply decreases.

Front

In Manhattan, where living space is in short supply, the city has enacted rent control, which limits the amount landlords can charge for rent. As a result,

Back

the demand for apartments in rent-controlled areas far outstrips the supply.