3rd Hour Supply and Demand Review

The Law of Demand states that as price goes up...

• Demand stays the same

• Demand goes down

• Demand goes up

Which of the following items are INELASTIC?

• Cereal

• Soda

• Electronics

• Medicine

Check all of the possible SUPPLY shifters

• Cost of inputs

• Technology

• Consumer Taste/Preferences

• Subsidies

There's been a large storm that's destroyed half of an apple orchard. How would this shift the supply curve for apple cider?

• Shift to the left

• Shift to the right

• Move along the supply curve

Check all of the following DEMAND shifters

• Price of related products

• Number of consumers

• Productivity

• Customer expectations

• Taxes

A lemonade stand changes its price from 50 cents to a dollar. How does this price change affect the demand curve?

• Shift to the right

• Shift to the left

• No shift - movement along the demand curve

Something that you would only ever buy when it's on sale is an example of an...

• Elastic good

• Inelastic good

Which shifter is the most likely to cause an increase in demand for basketball shoes during March Madness?

• Consumer Income

• Complements

• Consumer Expectations

• Cost of inputs