Supply & Demand Test Review

A shortage occurs when

• Quantity Supplied is less than Quantity Demanded

• Quantity Supplied is more than Quantity Demanded

• Quantity Supplied is the same as Quantity Demanded

• Shortage will never happen!

The image here is an example of a ________, which causes a _________

• Price Ceiling: Shortage

• Price Ceiling: Surplus

• Price Floor: Shortage

• Price Floor: Surplus

The image here is an example of a _________, which causes a________

• Price Ceiling: Shortage

• Price Ceiling: Surplus

• Price Floor: Shortage

• Price Floor: Surplus

Which of the following is the likely result of a successful advertising campaign for an electronic game?

• a supply curve that has shifted to the left

• a demand curve that has shifted to the left

• a supply curve that has shifted to the right

• a demand curve that has shifted to the right

A wildfire has put a major lumber producer out of business. How might an economist show one consequence of this in a graph?

• a supply curve that has shifted to the left

• a demand curve that has shifted to the right

• a demand curve that has shifted to the left

• a supply curve that has shifted to the right

If a price floor (minimum that can be charged) is set above equilibrium price, it creates a...

• shortage

• surplus

• market price

• demand

If a price ceiling (maximum that can be charged) that is set below the equilibrium price creates a...

• shortage

• surplus

• market price

• supply

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?

• Prices or availability of substitutes

• Prices or availability of complementary goods

• Change in the weather or season

• Change in the number of buyers