Supply and Demand Test 2 SI 2020

Which factor most directly affects the quantity of a good or service demanded in the market?

• A. changes in costs of resources

• B. producer expectations

• C. safety regulations

• D. changes in related goods

Which statement most accurately explains the effect of competition among local gas stations on the price of gasoline?

• A. The demand for gasoline will decrease.

• B. The price of gasoline will decrease.

• C. The price of gasoline will increase.

• D. The supply of gasoline will increase.

In Japan, bluefin tuna is considered a delicacy. A single tuna can sell for as high as $600 or even $70,000. This illustrates how

• A. high demand causes prices to increase.

• B. high demand causes prices to decrease.

• C. high prices cause demand to decrease.

• D. high prices cause supply to increase.

A company holds a monopoly of selling shoes. What effect does the monopoly have on the customer?

• A. Supply decreases.

• B. The prices are lower.

• C. Supply increases.

• D. The prices are higher.

How would an increase in the number of people driving fuel-efficient cars affect the marketplace?

• A. The demand for gasoline would go down.

• B. The price for gasoline would go up.

• C. The supply of gasoline would go down.

• D. There would be shortages of gasoline.

Which of the following is another term for market clearing price?

• A. scarcity

• B. equilibrium price

• C. abundance

• D. price gouging

The demand for gasoline tends to increase during times when many people go on vacation. This is largely due to the fact that more people are on the roads and more people need to fill up their gas tanks. The times of highest demand tend to be the summer and on holidays, such as Memorial Day the Fourth of July, and Thanksgiving.

What is the likely effect of this high demand on gasoline prices?

• A. The supply of gasoline will increase.

• B. The demand for gasoline will decrease.

• C. The price of gasoline will decrease.

• D. The price of gasoline will increase.

One way the buyers and sellers interact to determine market clearing price is that

• A. buyers and sellers each seek the lowest price.

• B. buyers and sellers each seek the highest price.

• C. buyers seek the lowest price while sellers seek the highest price.

• D. buyers seek the highest price while sellers seek the lowest price.

Which factor most directly affects the quantity of a good or service supplied in the market?

• A. the number of consumers

• B. buyer preferences

• C. changes in related goods

• D. the number of sellers

What is the likely effect of competition among Internet service providers on the price of services?

• A. The price of services will increase.

• B. The demand for services will increase.

• C. The demand for services will decrease.

• D. The price of services will decrease.