Economics Unit 2 Test - Supply and Demand

Front

If farmers stopped growing wheat, this would cause the __________________ curve of wheat to shift to the __________________.

Back

supply....... left

Front

If a study came out that showed that Steak and Shake food improves memory, this would cause the ___________ curve for Steak and Shake to shift ____________.

Back

demand.........right

Front

If sandals suddenly became very popular, what would happen to the market for basketball shoes? This would cause the ___________ curve for basketball shoes to shift ____________.

Back

demand.........left

Front

When CDs became popular, people stopped listening to tape cassettes. This caused the ___________ curve for tape cassettes to shift ____________.

Back

demand.........left

Front

The price of the nylon used to make umbrellas is cut in half. What will happen to the market for umbrellas?

Back

price decreases, quantity increases

Front

The price of the aluminum used to make umbrellas doubles. What will happen to the supply of umbrellas?

Back

supply decreases

Front

The weather forecast shows a lot of rain in the next few weeks. What will happen to the demand for umbrellas?

Back

increased demand

Front

How do you fix a surplus? Options: raise the price of the item, lower the price of the item, start selling a different product, keep the price of the item the same

Back

lower the price of the item

Front

How do you fix a shortage?

Back

raise the price of the item

Front

The price of lawnmowers drops significantly. What will be the effect on lawnmower oil?

Back

increased demand