Supply & Demand Quiz Review

When a consumer is able and willing to buy a good or service, he or she creates which of the following?

• Consumption

• Demand

• Supply

• Markets

In a market economy, how is the price level and quantity of goods determined?

• Supply & Demand

• Government regulations

• How much people are willing to pay

• The cost of goods

The supply curve is upward sloping because....

• as price increases suppliers will offer more of a product

• producers will supply less of a good as price increases

• Price goes down as suppliers produce more

• Prices are inversely related to quantity supplied

A movement from point "B" to point "A" represents

• A decrease in demand

• A decrease in Quantity Demanded

• An increase in Quantity Demanded

• An increase in demand

Which is an example of the substitution effect?

• Gas is more expensive so I drive less

• Doritos and Cheetos increase in price

• Orange Fanta is more expensive so I buy orange crush

• All of the above

The Law of Supply states the as the Price increases, the Quantity supplied:

• Increases

• Decreases

• Stays the same

Which of the following scenarios would cause the equilibrium price of coffee to increase?

• There is a surplus of coffee beans

• An article comes out saying a cup of coffee a day leads to increased mental cognition

• The price of Creamer (a complement) increases

• All of the above

Which of the following would NOT shift the supply curve for the new Xbox?

• The price of xbox decreases

• The company that makes XBOX gets better technology

• The price of the plastic Xbox uses decreases

The price of Cheetos increase to $2.00 in the vending machine, which would happen to the demand curve for Cheetos?

• An increase in demand

• A decrease in demand

• An increase in quantity demanded

• A decrease in quantity demanded

The quantity supplied exceeds the quantity demanded, which of the following occurs?

• Surplus

• Shortage

• A shift in the demand curve

• A shift in the supply curve