Supply and Demand Test Review

Price causes Supply to shift

• True

• False

An increase in input cost will create an increase in my supply

• True

• False

Fixed cost is what a business pays even if they produce nothing

• True

• False

Minimum wage is an example of a price ceiling

• True

• False

Technology changes influence which curve

• Supply

• Demand

A shift in price causes the supply curve to

• shift left

• shift right

• shift up

• shift down

• no shift

A small change in price will result in a large change in quantity describes which type of curve

• Inelastic

• Elastic

• Totally elastic

• Totally Inelastic

Which of these will cause demand to shift negatively

• Income amounts double

• Urban population booms

• A negative ad comes out about a product

• Taxes decrease

A shortage occurs when

• Quantity Supplied is less than Quantity Demanded

• Quantity Supplied is more than Quantity Demanded

• Quantity Supplied is the same as Quantity Demanded

• Shortage will never happen!

Price controls and Minimum wage are examples of

• The Government messing up our economy

• what is needed for equilibrium to occur

• the government taking the economy out of equilibrium

• natural things that help our economy run