A Review of Supply and Demand

Supply & Demand Review

Multiple Choice

What does  $$Q_D$$  represent?

• quantity demanded

• quantity suppled

• demand

• supply

Multiple Choice

What does  $$Q_S$$  represent?

• quantity demanded

• quantity suppled

• demand

• supply

Basics

•  $Q_D$  = Quantity Demanded

•  $D$  = Demand

•  $Q_S$  = Quantity Supplied

•  $S$  = Supply

Multiple Select

Which of the following can cause a change in $$Q_D$$ and  $$Q_S$$  for a good/service?

• Consumer Expectations

• Price of the Good/Service

• Consumer Incomes

• Prices of Inputs

Price & Quantity

•  $\Delta P\ \Longrightarrow\ \Delta Q_D$  

•  $\Delta P\ \Longrightarrow\ \Delta Q_S$  

Multiple Choice

Consumers learn that bananas cause terrible, terrible gas. How will the market for bananas change?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

The government decides to give a free car to everyone who buys more than 100 gallons of fuel next year. How will this affect the market for gas?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

Pandas learn how to pick peaches, and through a skilled interpreter, exclaim their desire to work in agricultural fields for free. How will this affect the market for peaches?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

WD-40 and butter are substitutes. The price of WD-40 increases. How will this affect the market for butter?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

Global warming causes half of the coffee plants around the world to die. What will happen to the market for Starbucks Frappuccinos?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

Mr. Trott makes the next test for the freshmen worth 50% of their semester grade. What will happen to the market for test answers?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

Tears and essays are compliments in production. If the grade value of essays increases, what will happen to the market for test answers?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease

Multiple Choice

Milk frothers and milk are complementary goods. What will happen to the market for milk frothers if the price of milk increases?

• Demand will Increase

• Demand will Decrease

• Supply will Increase

• Supply will Decrease