DETERMINANTS of Supply and demand shift

Expectations about the future price of a good can shift the demand curve.

• True
• False

What caused this to happen to the demand for gummy bears?

• Price of gummy worms increases
• New T.V. ad illustrates 50% of cavities are bear related
• Minimum wage is increased 7%
• Gummy bears become the official candy of netflix

What caused this to happen to the demand for McDonalds french fries?

• Price of hamburgers decreases
• McDonalds announces fries will be $.50 more expensive starting next week
• Wendys has a sale, buy one burger get two fries free for the whole month
• A new tax cut increases household income by 14%

What caused this to happen?

• Population decreased
• Item becomes trendy
• People expect the item to be cheaper later
• Price of product decreased

In the Market for TV's, a new technology is used to increase the production of TVs. What happens?

• Demand will increase

• Demand will decrease

• Supply will increase

• Supply will decrease

The law of demand states that as the price increases then 

• quantity demanded increases
• quantity demanded decreases
• demand increases
• demand decreases

Equilibrium in a market means which of the following?

• the point at which quantity supplied and quantity demanded are the same and a price point is set

• the point at which unsold goods begin to pile up

• the point at which suppliers begin to sell supplies

When quantity supplied exceeds quantity demanded.

• shortage

• fad

• search costs

• surplus

When quantity demanded exceeds quantity supplied at a certain cost

• shortage
• fad
• search costs
• surplus

If there is a shortage, what will price do?

• Price will increase.

• Price will shift to the right.

• Price will stabilize.