Supply and Demand Test Review

When the price of a product goes up, what will happen to supply and demand?

• a.  Supply will decrease, and demand will increase.
• a.  Supply will increase, and demand will decrease.
• a.  Supply will increase, and demand will stay the same.
• a.  Supply will stay the same, and demand will increase.

What will happen to a supply and demand graph when sales tax increases?

• The demand curve shifts to the left.   
• The demand curve shifts to the right.
• The supply curve shifts to the left.
• The supply curve shifts to the right.

What will happen to a supply and demand graph if the cost of inputs decreases?

• a.  The demand curve shifts to the left.
• a.  The demand curve shifts to the right.
• a.  The supply curve shifts to the left.
• a.  The supply curve shifts to the right.

What is a non-price factor of a change of demand?

• Consumer preferences
• Price ceiling
• Productivity levels
• Subsidy

Boycotting a business because you do not like their business practices is an example of... 

• Non-price determinant of demand
• The concept of competition
• The concept of laissez-faire
• The idea of profit motive

Supply will decrease and shift to the left when which of the following happens?

• Production taxes decline
• The number of firms leaving the industry increases
• The cost of inputs decreases
• There are fewer government regulations in place

What is the relationship between price and quantity demanded?

• As the price decreases, the quantity demanded decreases
• As the price decreases, the quantity demanded increases
• Demand decreases as the price decreases
• Price remains constant as the demand increases

Where do you find price equilibrium?

• Where a supply curve and demand curve intersect
• Where the supply curve is greater than the demand curve
• Where the demand curve is greater than the supply curve
• At the price floor

If a company wants to build a new office building, what local/city regulation will they have to consult to find out where they are allowed to build?

• Building sanitation systems
• Historic Preservation Laws
• Building restrictions on height
• Zoning laws

A price ceiling results in a

• shortage
• surplus
• an excess
• a gain