Supply and Demand and Prices

What might cause consumers to demand fewer slices of pizza?

• an increase in supply of pizza slices.

• a decrease in the supply of tacos

• an increase in the price of pizza slices

• a decrease in the price of pizza slices

Based on the diagram, which of the following situations reflects the substitution effect resulting from a special sale on Z-Ball brand golf balls?

• The price of Z-Balls increases when the demand for them increases.

• The price of Z-Balls decreases when the demand for them increases.

• Consumers reject the Z-Balls, assuming they are an inferior product.

• Consumers purchase Z-Balls rather than the brand they normally buy.

How many slices of pizza per day would you expect a pizzeria in this market to sell if it were pricing its slices at $3.50?

• 150

• 175

• 200

• 225

Which of the following is the likely result of a successful advertising campaign for an electronic game?

• a supply curve that has shifted to the right

• a supply curve that has shifted to the left

• a demand curve that has shifted to the right

• a demand curve that has shifted to the left

How would a new government subsidy for rice farmers affect the market for rice?

• It would increase the supply by decreasing rice farmers' production costs.

• It would increase the supply by increasing the demand for rice.

• It would decrease the supply by increasing rice farmers' production costs.

• It would decrease the supply by encouraging farmers to grow another grain.

Based on the graphs, which of the following BEST describes equilibrium?

• the point at which the quantity supplied equals the price

• the point at which the quantity supplie equals 200 or more

• the point at which the price equals $3.00

• the point at which the demand and supply both equal 200

How are price ceilings (legal maximum price for a good or service) and price floors (legal minimum price) similar?

• Both involve the government's setting of a max price.

• Both represent input changes that affect demand.

• Both bring about disequilibrium because one causes a shortage and one causes a surplus.

• Both are examples of government price supports.

A change in the cost of an input can decrease quantity supplied. As the supply curve shifts to the left, suppliers raise their prices and the quantity demanded falls. After the movement described above, where will the new equilibrium point be?

• at a spot along the demand curve above and to the right of the original equilibrium point

• at a s[pt along the demand curve above and to the left of the original equilibrium point

• at a spot along the demand curve below and to the right of the original equilibrium point

• at a spot along the demand curve below and to the left of the original equilibrium point

Which of the following is generally true after a shift in supply or demand?

• Supply rises along with demand.

• Demand falls as prices rise.

• Equilibrium is gradually restored.

• Equilibrium price moves down the demand curve.

What does this curve represent?

• demand
• supply
• equilibrium
• shortage