Which is an example of the law of demand at work?

Demand for pizza rises when the price of pizza falls.

The price of pizza falls when demand for pizza falls.

The price of pizza goes up when the price of cheese goes up.

Demand for pizza goes down when tacos become more popular.

A restaurant owner has not changed menu prices in a year. One month ago, the owner noticed that sales for all lunch items had fallen by 50 percent. Which of the following most likely caused the demand curve to shift?

A local newspaper praised the restaurant’s food.

A demand curve is accurate only as long as ceteris paribus is true. What does this Latin phrase mean?

All things other than price stay constant.

Demand for goods remains elastic

Goods are used in place of one another.

Supply can keep up with prices.

The price of bread and the price of lobster each go up by 20 percent. What will most likely happen to demand for each good?

Demand for lobster will fall more than the demand for bread.

Demand for both goods will go to zero

Demand for lobster will increase more than demand for bread.

Demand for both goods will rise.

Why does an economist create a market demand schedule?

to predict how people will change their buying habits when prices change

to show how various conditions can change the demand for a good

to have an idea of how a market would change if conditions in an area changed

to learn what demands the market will make under unusual conditions

A hot summer causes demand for ice cream to go up. What happens next?

The price of ice cream rises leading to increase in supply

Stores import ice cream from overseas.

Ice cream factories make less ice cream.

Workers at ice cream factories go on strike and stop production.

What does it mean when you have demand for a good or service?

You are willing and able to buy the good at the given price.

You want the good but may not have the money for it.

You can afford the good but may be unwilling to buy it.

You are able to buy the good but not at the given price.

How does a person’s perception of a good as a necessity or a luxury affect his or her purchase of it?

A good that is perceived as a necessity will be purchased even if the price rises.

If a good is perceived as a luxury, demand becomes inelastic

A good that is perceived as expensive will no longer be considered a necessity

People who have a lot of money will buy goods even if they think they are a luxury.

The graph above shows a shift in the market demand curve for a certain brand of shirt. What does the new market demand curve predict?

how nonprice factors reduce the number of shirts people will buy

whether the quantity of shirts demanded goes down as price goes up

the long-term popularity of certain shirt brands

the highest or lowest future prices for these shirts

When the price of a product goes down, what happens?

Some producers produce less, and others drop out of the market.

Existing firms continue their usual output but earn less.

New firms enter the market as older ones drop out.

Existing producers expand, and new producers enter the market.

Suppose the supply of walnuts is inelastic. What will growers do if the price changes?

They will not soon produce more walnuts, even if the price doubles.

They will quickly produce more walnuts, even if there is a small increase in price.

They will produce more walnuts when the price drops.

They will have to respond to decreasing marginal returns of labor.

Why is demand for milk inelastic?

Milk is considered to be an essential staple drink by many.

It is considered a luxury, not a necessity.

There are many substitutes for milk.

Buying milk takes a large portion of income.

Which of the following is the best example of the law of supply?

When the price of a sandwich rises, the sandwich shop increases the quantity supplied.

A food producer increases the number of acres of wheat he grows to supply a milling company.

A milling company builds a new factory to process flour to export.

A catering company buys a new dishwasher to make its work easier.

In the cartoon, if dog kisses and towels are complementary goods, then which of the following would likely happen if Odie lowered the price of kisses to fifty cents?

The demand for towels would increase if the price stayed at $2.

The demand for towels would decrease if the price stayed at $2.

The demand for towels would stay the same at $2.

The demand for towels would only change if the price for towels changes.

How can the demand for one good be affected by increased demand for an‐ other one?

If goods are used together, increased demand for one will increase demand for the other

A drop in the price for a good will increase demand for it and its substitute.

When goods are made by the same producer, increased demand for one will increase demand for the other.

If goods are substitutes, increased demand for one will increase demand for the other.

What can cause an entire demand curve to shift?

uncertainty about the future price

How does the substitution effect work when the price of an item drops?

Consumers buy the item as a substitute for other things

The item becomes less and less popular as price drops.

Consumers buy the item even if they do not particularly want it.

The substitutes for the item also suffer a drop in prices.

Farmer Brown has ten dairy cows. She just invested in automatic milking ma‐ chines. What effect will this have on her supply?

Her supply will go up, because of greater efficiency.

Her supply will go up, because she won’t sell as much milk.

Supply will remain the same, but she will have to sell more.

None, although she will raise prices to make up the lost revenue.

Which of the following will happen if the price of butter goes up?

The demand for margarine increases.

The demand curve for butter moves to the right

The demand curve for margarine moves to the left.

The demand for butter increases.

In July, an automobile company announces that next year’s models, with more features, will start to arrive in September or October. What is likely to happen to demand for this year’s model in August?

Demand will stay the same and price will stay the same.

Demand will go to zero because everyone will want the new model

Demand will rise in anticipation of higher prices.

Demand will fall in anticipation of lower prices.

If a seller expects the price of a good to rise in the future, the seller will

increase production of the good.

increase the price of the good now.

store these goods until the price goes up.

place these goods on the market immediately

Which of the following factors is likely to have had the greatest im‐ pact on the change in supply shown in the graph?

new technology for freezing food

stricter health code regulations

Ultimately, the main factor that drives decisions about production is the

government regulations and rules

availability of natural resources

A corn farmer has a new machine to pick corn. How will the quantity he supplies change?

It will increase as input costs decrease

It will not change the quantity supplied

It will decrease as input costs decrease.

It will be reduced by the government.

According to the table, when the eighth worker is hired, the marginal product of labor becomes negative. This is because

there are more workers than are needed, disrupting output.

the workers are making more shoes than the demand.

there are fewer workers available to make more shoes.

the need for a greater supply of shoes has decreased.

Big Publisher Inc. is considering using e-mail instead of shipping printed materials to its long-distance workers. How will this move affect Big Publisher Inc.?

It should lower costs and increase supply

At first, supply will rise, but then it will decrease.

Supply and costs will probably both decrease.

Costs will drop, but supply will remain the same.

Gerda owns a grocery store that is struggling to stay in business? What is she most able to do to cut her operating costs.

decrease hours for some workers.

stop paying her property taxes.

Chapter 3 Test Review

Authored by Maggie Meyung

Life Skills

12th Grade

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

46 questions

Show all answers

FILL IN THE BLANKS QUESTION

1 min • 1 pt

What two factors must be present for consumers to consume and producers to produce at any given price?

(a)

FILL IN THE BLANKS QUESTION

1 min • 1 pt

Describe a realistic example of the law of demand operating in the production of a good or service (change in quantity demanded).

(a)

FILL IN THE BLANKS QUESTION

1 min • 1 pt

Describe a realistic example of the law of supply operating in the production of a good or service (change in quantity supplied).

(a)

FILL IN THE BLANKS QUESTION

1 min • 1 pt

Explain the difference between a change in quantity supplied or demanded and a change in supply or demand.

(a)

FILL IN THE BLANKS QUESTION

1 min • 1 pt

Define equilibrium or market clearing price.

(a)

FILL IN THE BLANKS QUESTION

1 min • 1 pt

Explain and evaluate the price system in a free market economy (10 points – bonus possible).

(a)

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the cartoon McDonalds would be an example of which of the following?

complementary good

substitute good

normal good

inferior good

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Microsoft

or continue with

Facebook

Apple

Others

Already have an account?

Similar Resources on Wayground

47 questions

AHA Heartsaver Adult CPR/AED

Quiz

•

9th - 12th Grade

44 questions

Movies

Quiz

•

2nd Grade - Professio...

42 questions

Housing and Interior Design

Quiz

•

8th - 12th Grade

42 questions

Nutrition Review - HL

Quiz

•

9th Grade - University

42 questions

Test 1: FFA and Greenhouse Structures

Quiz

•

9th - 12th Grade

50 questions

Job Application Questions

Quiz

•

9th - 12th Grade

45 questions

Phase 2 Final (1st Semester)

Quiz

•

12th Grade

50 questions

3rd Summative Assesement

Quiz

•

12th Grade

Popular Resources on Wayground

24 questions

PBIS-HGMS Day 10

Quiz

•

6th - 8th Grade

10 questions

HCS SCI 03 Summer School Review 3

Quiz

•

3rd Grade

11 questions

Home Scope

Quiz

•

7th - 8th Grade

15 questions

HCS SCI 05 Summer School Assessment 3 Review

Quiz

•

5th Grade

35 questions

Lufkin Road Middle School Student Handbook & Policies Assessment

Quiz

•

7th Grade

18 questions

Geo 11.3 Area of Circles and Sectors

Quiz

•

9th - 11th Grade

Chapter 3 Test Review

What two factors must be present for consumers to consume and producers to produce at any given price? (a)

Describe a realistic example of the law of demand operating in the production of a good or service (change in quantity demanded). (a)

Describe a realistic example of the law of supply operating in the production of a good or service (change in quantity supplied). (a)

Explain the difference between a change in quantity supplied or demanded and a change in supply or demand. (a)

Define equilibrium or market clearing price. (a)

Explain and evaluate the price system in a free market economy (10 points – bonus possible). (a)

In the cartoon McDonalds would be an example of which of the following?

Which is an example of the law of demand at work?

A restaurant owner has not changed menu prices in a year. One month ago, the owner noticed that sales for all lunch items had fallen by 50 percent. Which of the following most likely caused the demand curve to shift?

A demand curve is accurate only as long as ceteris paribus is true. What does this Latin phrase mean?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

What two factors must be present for consumers to consume and producers to produce at any given price?

(a)

Describe a realistic example of the law of demand operating in the production of a good or service (change in quantity demanded).

(a)

Describe a realistic example of the law of supply operating in the production of a good or service (change in quantity supplied).

(a)

Explain the difference between a change in quantity supplied or demanded and a change in supply or demand.

(a)

Define equilibrium or market clearing price.

(a)

Explain and evaluate the price system in a free market economy (10 points – bonus possible).

(a)