AP Econ Unit 2

How will an increase in demand and a simultaneous decrease in supply affect the

equilibrium price and quantity of a good in a market?

• Price increase and quantity increase

• Price increase Quantity indeterminate

• Price decrease Quantity increase

• Price decrease Quantity indeterminate

• Price indeterminate Quantity indeterminate

If labor cost rise in the automobile industry, which of the following will happen to car prices

and the quantity of cars sold?

• Price decrease Quantity Sold decrease

• Price decrease Quantity Sold increase

• Price increase Quantity Sold decrease

• Price increase Quantity Sold increase

• Price increase Quantity Sold no change

In one fourth of a nation wheat crop is destroyed by a flood in a given season, then the price

of wheat and the Quantity Sold will change in the short run in which of the following ways?

• Price decrease Quantity Sold No change

• Price decrease Quantity Sold increase

• Price increase Quantity Sold decrease

• Price increase Quantity Sold increase

• Price no change Quantity Sold increase

If there is a decrease in the price of the coffee beans used to make brewed coffee, how will

this affect the equilibrium price and quantity of brewed coffee?

• Equilibrium price will decrease and equilibrium quantity will increase

• Equilibrium price will decrease and equilibrium quantity will not change

• Equilibrium price will decrease and equilibrium quantity will decrease

• Equilibrium price will increase and equilibrium quantity will decrease

• Equilibrium price will increase and equilibrium quantity will not change

A simultaneous increase for both the demand for the supply of a good in a market will lead to

which of the following changes in the equilibrium price and quantity of the good?

• Price increase Quantity increase

• Price indeterminate Quantity decrease

• Price indeterminate Quantity increase

• Price increase Quantity indeterminate

• Price decrease Quantity increase

If the product technology of a good improves and at the same time the number of consumers

willing and able to buy the good in the market increases, which of the following will definitely

occur?

• Equilibrium price will increase

• Equilibrium price will decrease

• Equilibrium quantity will increase

• Equilibrium quantity will decrease

• Equilibrium quantity will remain the same

In the coffee market, which of the following changes will increase the price and decrease the

quantity of coffee?

• Supply increase Demand increase

• Supply increase Demand decrease

• Supply decrease Demand increase

• Supply no change Demand increase

• Supply decrease Demand no change

To protect high cost domestic producers, a country imposes a tariff on an imported

commodity, Y. Which of the following is most likely to occur in the short run?

1. A decrease in domestic production of Y

2. An increase in domestic production of Y

3. An increase in foreign output of Y

• 1 only

• 2 only

• 3 only

• 1 and 3 only

• 2 and 3 only

• Price $2.00 Quantity 10,000

• Price $1.75 Quantity 15,000

• Price $1.50 Quantity 20,000

• Price $1.25 Quantity 30,000

• Price $0.75 Quantity 5,000.

• There is a shortage, and the price will rise

• There is a shortage, and the price will fall

• There is a surplus, and the price will rise

• There is a surplus, and the price will fall

• Demand will decrease and the supply will increase