Unit 2 Practice Test - Supply and Demand

Taylor Swift is seen wearing a new style of dress. People now want this dress. Which demand determinant is this most likely to fall under?

• Change in Consumer Income

• Change in Consumer Tastes

• Change in Price of Substitute Good

• Change in Consumer Price Expectations

Oreo cookies are now extremely expensive to purchase. Instead of buying Oreo cookies, I now want to buy Chips Ahoy. What determinant of demand does this likely fall under?

• Complementary Good

• Substitute Good

• Change in Consumer Price Expectations

• Change in Number of Consumers in the Market

The government is giving every individual 18 and above an extra $1,000.00 this year. What determinant of demand does this likely fall under?

• Change in Consumer Tastes
• Change in Consumer Price Expectations
• Change in Number of Consumers in the Market
• Change in Consumer Income

I know that the iPhone 8 is coming out next year but really need a phone badly. I'm thinking about buying an iPhone 7 when the new iPhone comes to the market because it will be much cheaper than today's price. What determinant of demand does this suggest?

• Change in Price of Complementary Good
• Change in Consumer Price Expectations
• Change in Number of Consumers in the Market
• Change in Consumer Income

McDonald's is having a special on their Big Mac purchases this week. Every Big Mac is $3 cheaper! When burger prices go down, this means you can buy more fries and a drink. What demand factor does this relate to?

• Change in Consumer Tastes

• Substitute Good

• Complementary Good

• Change in Number of Consumers in the Market

Porterville, California is now a major immigration center for Russians. Over 10,000 Russians are living in Porterville now! What demand does this determine?

• Change in Consumer Income
• Change in Consumer Tastes
• Change in Consumer Price Expectations
• Change in Number of Consumers in the Market

Labor costs are rising through the roof! Minimum wages are now at $25 an hour. This means even the basic item will need to cost more to keep up with rising costs. What determinant of supply does this most relate to?

• Change in Technology

• Change in Number of Sellers in the Market

• Change in Input Costs

A brand new machine cooks, cleans, and never messes up a fast food order. This means we can sell more fast food than ever before, leading to producers cutting cost of fast food. Which supply factor does this most likely relate to?

• Change in Technology
• Change in Profit Opportunities Producing other Products
• Change in Producers' Price Expectations

Takis have been taking the market by storm! Everyone and their mom wants in on selling this delicious treats! Companies that never thought about selling Takis-like products are now selling their version of a hot chip. What supply factor is this?

• Change in Technology
• Government Action
• Change in Number of Sellers in the Market

The government has put a ban on all items that are unhealthy. No store can legally sell soda over 24 ounces. The supply of anything over 24 ounces becomes non-existent. What supply factor is this?

• Change in Technology
• Change in Cost of Factors of Production
• Government Action