Supply and Demand

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs

• Buy fewer CDs

• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs
• Supply fewer CDs
• Quantity supplied will not change

Which of the following is NOT a direct determinant of the supply of peanut butter?

• The price of peanuts

• The wages of peanut butter factory workers

• The income of peanut butter consumers

• Existing peanut butter making technology

Which of the following will cause an increase in demand for snowboards?

• More costly production methods

• A decrease in the price of lift tickets at ski resorts

• A decrease in consumer income

• A decrease in the population

A major environmental report highlights the damaging effect of diesel 4x4's. What will happen to the demand for electric vehicles?

• Demand for electric vehicles will decrease

• Demand for electric vehicles will increase

• Demand for electric vehicles will stay the same

What will happen to the price of corn if almost no rain falls on corn crops?

• The price will increase

• The price will decrease

What will happen to the price of shoes if shoe producers have to pay higher wages to their workers?

• The price will increase

• The price will decrease

What will happen to the price of new cars if a weak economy causes people to have lower incomes?

• The price will increase

• The price will decrease

Weather forecasters predict this summer will be much hotter than usual. What will probably happen to the demand for air conditioners?

• The demand will probably go up

• The demand will probably go down

According to a recent newspaper story, more Americans own dogs than ever before. As a result, ten new companies start making and selling dog food. What will probably happen to the overall supply of dog food?

• The supply will probably go up.

• The supply will probably go down.