Unit 2: Supply & Demand

A decrease in quantity demanded

• results in a movement downward and to the right along a demand curve.
• results in a movement upward and to the left along a demand curve.
• shifts the demand curve to the left.
• shifts the demand curve to the right.

A movement upward and to the left along a demand curve is called a(n)

• increase in demand.
• decrease in demand.
• decrease in quantity demanded.
• increase in quantity demanded.

Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

• a decrease in the price of DVDs
• a decrease in the price of DVD players
• a change in consumer preferences toward watching movies in movie theaters rather than at home
• a decrease in the number of people in the United States

A decrease in the price of a good will

• increase supply.
• decrease supply.
• increase quantity supplied.
• decrease quantity supplied.

The movement from Point A to Point B represents a(n)

• increase in the price.
• decrease in the quantity supplied.
• shift in the supply curve.
• Both Orange and Blue are correct.

Which of the following would not shift the supply curve for iphones?

• an increase in the price of iphones
• a decrease in the number of sellers of iphone
• an increase in the price of plastic, an input into the production of iphones
• an improvement in the technology used to produce iphones

Graph shows which of the following?
(actually use this graph to answer the question)

• a decrease in demand and a decrease in quantity supplied
• a decrease in demand and a decrease in supply
• a decrease in quantity demanded and a decrease in quantity supplied
• a decrease in quantity demanded and a decrease in supply

If a price floor was set at 320, what quantity would be purchased?

• 20
• 40
• 60
• 80

Read the following situation to answer the question:

The yeast needed to to make whole wheat bread rises sharply in price. What will happen to the price of whole wheat bread?

• The price will rise.
• The price will stay the same.
• The price will fall.

The quantity of peanuts supplied increased from 40 tons/week to 60 tons/week when the price of peanuts increased from $4/ton to $5/ton. The price elasticity of supply for peanuts over this price range is:

• Elastic
• Inelastic
• Unit Elastic
• Perfectly Inelastic