Supply and Demand Test

Is the image in the graph a price ceiling or a price floor?

• Price Ceiling

• Price Floor

According to the law of demand, as price rises

• Nothing happens

• Consumers buy more

• More products are produced

• Consumers buy less

If consumer income rises, how would the demand curve change?

• It will not change

• It will shift right

• It will shift left

• Consumers will buy less

What is the best explanation for the change you see in the supply curve?

• Subsidies went away

• Taxes increased

• Production technology improved

• Resource cost rose

When the supply curve shifts right, what happens to market price and quantity?

• Price falls, quantity rises

• They both fall

• Price rises, quantity rises

• They both rise

A decrease in supply will cause the equilibrium price to

• Rise

• Fall

When supply shifts to the left, what happens to market price and quantity?

• They both go up

• Price rises, quantity falls

• They both go down

• Price falls, quantity rises

Is the following graph showing a price ceiling or price floor?

• Price Ceiling

• Price Floor

Which of the following might have caused the demand curve to shift right?

• Consumer income fell

• Resource cost dropped

• Consumer preferences for the product improved

• Number of consumers fell

At any price above the equilibrium price

• QD = QS

• QD > QS

• QD < QS