Supply and Demand part 2

On a graph, supply and demand intersect at equilibrium.

• True

• False

On a supply and demand graph, a shift in the curve represents which of the following?

• A change in price.

• A change in quanitity

• A change in an underlying condiditon.

What happens when the quantity demanded for a good is less that the quantity supplied?

• A suplus will occur and prices will decrease.

• A surplus will occur and prices will increase

• A shortage will occur and prices will increase.

What happens when the quantity supplied is greater than the quanitity demanded.

• A surplus will occur and prices will decrease.

• A surplus will occur and prices will increase

• A shortage will occir and prices will increase.

When a curve shifts to the right on a graph, this means that the quantity demanded or the quanitity supplied has increased.

• True

• False

When a curve shifts to the left on a graph this means that the quanitity supplied or the quanitity demanded has decreased.

• True

• False

A shift of a supply or demand curve can be caused by influencers duch as income of byers and number of sellers.

• True

• False

A shift along a curve has to do with

• underlying condidtions.

• price.

Underlying condiditions such as number of sellers and the cost of input resources are underlying conditions that impact

• demand.

• supply.

Underlying conditions such as income of buyers and tastes and preferences of buyers impact

• Demand.

• supply.