Demand and Supply Review

Multiple Choice

According to the Law of Demand, if prices go from $3.50 to $2, what will happen to quantity demanded?

• Quantity demanded will decrease

• Quantity demand will increase

• Quantity demanded will stay the same

• It depends on the customer

Multiple Choice

According to the Law of Demand, if prices go from $1.50 to $3.50, what will happen to quantity demanded?

• Quantity demanded will decrease

• Quantity demand will increase

• Quantity demanded will stay the same

• It depends on the customer

Multiple Choice

At $3, what is the quantity demanded for tacos?

• 0

• 10

• 30

• 60

Multiple Choice

At $2, what is the quantity demanded for tacos?

• 20

• 30

• 40

• 50

Multiple Select

Ms. Allen used to drink two cans of Coke every day. Over time she started to drink more water. As a result, what happened to her demand for Coca-Cola?

• Increase

• Decrease

Multiple Choice

People have decided that iPhones are lame and Androids are wayyy better. What will happen to the demand for the new Samsung Galaxy phone?

• Increase

• Decrease

Multiple Choice

What is being illustrated in the image?

• Increase in demand

• Decrease in demand

Multiple Choice

Hot wings and ranch represent which type of goods?

• Substitute goods

• Complementary goods

Multiple Choice

If the price of bread is expected to increase next month due to a shortage of wheat, what will happen to the demand for bread right now?

• Increase

• Decrease

Multiple Choice

The Law of Demand states that when the price of a good INCREASES, quantity demanded (Qd)

• Decreases

• Increases

Multiple Choice

The Law of Demand states that when the price of a good DECREASES, quantity demanded (Qd)

• Decreases

• Increases

Multiple Choice

What changes quantity demanded?

• Consumer tastes and preferences.

• Price of a complementary good.

• Price of a good.

• Price of a substitute good.

Multiple Choice

Anything that affects the buying decision, other than the product's price, will change demand. These are determinants of demand.

• True

• False

Multiple Choice

Which is an example of a change in consumer tastes and preferences?

• Consumers buy one good instead of another.

• Consumers choose to save their money instead of spending it.

• Consumers choose to buy goods that are low in price.

• Consumers choose to buy goods that are trendy and fashionable.

Multiple Choice

If your income increased, what would happen to your demand for more expensive goods?

• Your demand for expensive goods would not change.

• Your demand for expensive goods would decrease.

• Your demand for expensive goods would increase.

• The quantity demanded for expensive goods would change.

Multiple Select

Which of the following are examples of substitute goods?

• Pens and pencils

• Tea and coffee

• Gasoline and cars

• Peanut butter and jelly

Multiple Choice

The amount of a product available at all possible prices is called

• Quantity supplied

• Supply

Multiple Choice

The price of coffee has recently increased. As a result, what will happen to the supply of iced frappuccinos at Starbucks?

• Increase

• Decrease

Multiple Choice

What is being illustrated in the image?

• Decrease in supply

• Increase in supply

Multiple Choice

The Law of Supply states that when the price of a good INCREASES, quantity supplied (Qs)...

• Increases

• Decreases

Multiple Choice

Which of the following is NOT one of the determinants of supply?

• Change in number of sellers

• Change in tastes and preferences

• Change in the cost of inputs

• Education

Multiple Choice

The amount of a product available at a SPECIFIC price is called

• Quantity supplied

• Supply

Multiple Choice

The letters A, B, C, and D in the image represent

• Supply

• Quantity supplied

Multiple Choice

The Law of Supply states that when the price of a good DECREASES, quantity supplied (Qs)...

• Increases

• Decreases

Multiple Choice

A new donut shop called "Dunkin' Kreme" has opened five new locations in the Atlanta area. As a result, what will happen to the supply of donuts?

• Increase

• Decrease

Multiple Choice

The U.S. government has removed regulations for various car factories, allowing them to release more pollution in the air. As a result, what will happen to the supply of cars?

• Increase

• Decrease

Multiple Choice

When producers offer more of a good as its price increases and less as its price falls, this defines the

• law of demand

• law of supply

• change in demand

• change in supply

Multiple Choice

The willingness and ability of a producer to make a product is referred to as

• quantity supplied

• quantity demanded

• supply

• demand

Multiple Choice

Which way does a supply curve slope?

• down
• up
• both
• neither

Multiple Choice

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

Multiple Choice

Which of the following leads to an increase in supply?

• Gallery Furniture will raise prices on all wood furniture

• six new companies begin producing smart phones

• price of a complementary good goes down

• increased cyclical employment

Multiple Choice

If I make Jordans for $50 and sell them for $100. I will make $50. This is an example of...

• quantity supplied

• demand

• supply

• profit

Multiple Choice

When the gov't pays money to businesses, usually to encourage them to produce a certain product..

• taxes

• regulations

• competition

• subsidies

Multiple Choice

Businesses pay the gov't, which helps pay for gov't services- but can lead to higher prices for their products

• subsidies

• cost of production

• regulations

• taxes

Multiple Choice

The want or willingness a consumer has to purchase a good or a service is called?

• shortage
• supply
• price
• demand

Multiple Choice

The amount of goods or services available for a producer to sell is called?

• supply
• demand
• producer
• consumer

Multiple Choice

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

Multiple Choice

When the supply of a product or service goes up and the demand stays the same the Price will typically do what? 

• rise
• fall
• stay the same
• Consumer

Multiple Choice

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

Multiple Choice

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

Multiple Choice

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

Multiple Choice

Which determinant of demand is this?

Celebrities start wearing lime green sweatshirts so they become more popular and in demand

• tastes/ style

• income

• number of buyers

• substitute goods