Supply demand and Equilibrium unit test

According to the Law of Demand, Price and Quantity demanded have what type of relationship?

• Direct

• Inverse

• Parallel

Which item is NOT a determinant (shifter) of Supply

• Government Actions

• Technology

• Taste

What condition is met when the supply and demand curves intersect?

• surplus

• shortage

• equilibrium

If there is natural disaster (i.e. hurricane) which curve would shift left?

• Supply

• Demand

The Law of Supply states that Price and Quantity supplied are related how

• neutral

• directly

• parallel

If the current price, and only the current price, of product being studied changes the we have?

• movement along the curve

• shift of the curve

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

What could cause the shift from D1 to D2?

• A change in preferences

• A change in price

• A change in quantity supplied

If the supply curve on this graph represents iPhones, what would cause the change from S to S1 (red to purple line)?

• An increase in computer chips

• An increase in the cost of producing an iPhone

• Employees figure out a way to work more efficiently

Farmers in California have had wonderful weather. They have produced the largest crop of watermelons in years. What will happen to the price of watermelons?

• The price will go up.
• The price will go down.