Supply and Demand

Front

The law of demand states that if the price of CD’s rise, consumers will

Back

Buy fewer CDs

Front

The law of supply states that if the price of CD’s rise, suppliers will

Back

Supply more CDs

Front

Which of the following is NOT a determinant of the supply of peanut butter? The price of peanuts, The wages of peanut butter factory workers, The income of peanut butter consumers, Existing peanut butter making technology

Back

The income of peanut butter consumers

Front

Which of the following will cause an increase in demand for snowboards? Options: More costly production methods, A decrease in the price of lift tickets at resorts in Colorado, A decrease in consumer income, A decrease in the population

Back

A decrease in the price of lift tickets at resorts in Colorado

Front

What does a “surplus” (extra amount) of goods in a market imply?

Back

Prices are too high

Front

What is the INITIAL (first) effect on Japanese car manufacturers if the price of material(s) that Japan uses in making cars declines?

Back

The input costs of Japanese made cars in the US will decrease.

Front

What happens to the market for gasoline as Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer?

Back

Demand for gasoline will increase

Front

What happens to the market for gasoline due to Americans cutting back on family vacation road trips?

Back

Demand for gasoline will decrease

Front

Costs of producing gasoline has increased due to rising energy costs. What happens to the market for gasoline?

Back

Supply for gasoline will decrease

Front

In an attempt to increase the production of oil and gasoline, Congress and the President have given the okay to drill in the Alaskan Arctic Preserve. What happens to the market for gasoline?

Back

Supply for gasoline will increase