Supply, Demand, Markets & Prices

The Law of Demand states that as quantity demanded decreases...

• wages decrease
• production increases
• price increases
• quality decreases

A sharp rise in the price of Doritos may lead to an increase in the demand for

• salsa
• hamburgers
• Cheetos
• napkins

What would cause the demand to move along the demand curve instead of shifting it right or left? 

• price
• income
• preferences
• expectations

What will happen in relation to demand for swimsuits if the weather is sunny and beautiful? 

• the demand curve shifts to the left
• the demand curve becomes flatter
• the demand curve shifts to the right
• the demand curve becomes steeper

Supply depends on the willingness and ability of 

• donors to contribute
• advertisers to promote
• producers to sell
• consumers to purchase

According to the Law of Supply, what happens as price increases? 

• The quantity supplied increases
• The quantity supplied decreases
• The supply curve shifts to the left
• The supply curve shifts to the right

Which of these would most likely increase the supply of Pizza Hut pizza? 

• a delivery trucker strike (who bring ingredients)
• a government excise tax
• a decrease in the price of cheese
• an increase in the supply of Runza hamburgers

The degree to which the quantity demanded responds to changes in price is called

• elasticity
• revenue
• schedule
• utility

Which of these best describes market equilibrium? 

• the price of Pepsi does not vary much from week to week 
• Pepsi production provides a good profit for the manufacturer
• everyone who wants Pepsi can easily afford to buy it 
• the amount of Pepsi for sale matches the amount that people want to buy

Where supply and demand intersect

• equilibrium 
• elasticity
• demand curve
• supply curve