Demand, Supply, Equilibrium

Federal minimum wage laws change, causing Chipotle’s labor costs to rise. What will happen to the market for burritos?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

Widespread prosperity allows people to buy more jelly beans. What will happen to the market for jelly beans?

• Supply shift left

• Supply shift right

• Demand shift left

• Demand shift right

A panel of doctors announces that coffee may help cure migraine headaches. What will happen to the market for coffee?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

The government places a tax on rubber. What will happen to the market for car tires?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

A new taco shop opens in Marshall. What will happen to the supply of Tacos in Marshall?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

The price of Snickers candy bars increases. What will happen to the market for Milky Ways?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

The price for Coca Cola, a substitute for Pepsi, decreases. What will happen to the market for Pepsi?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

The price of cream, a complementary good for coffee, decreases. What will happen to the market for coffee?

• Supply will shift left

• Supply will shift right

• Demand will shift left

• Demand will shift right

The Law of Demand states that...

• As prices increase, quantity demanded decreases and vice versa

• As prices increase, quantity demanded increases

• As prices increase, quantity supplied increases

• As prices decrease, quantity supplied decreases

The Law of Supply states that...

• As prices increase, quantity demanded decreases.

• As prices increase, quantity supplied decreases; as prices decrease, quantity supplied increases.

• As prices increase, quantity supplied increases; as prices decrease, quantity supplied decreases.

• As supply increases, demand decreases.