Supply and Demand Test

When the price of Toyota Corollas rises, the demand for Corollas falls

• True
• False

A surplus will occur in a market when the price of the product is greater than the equilibrium price

• True
• False

If the government increased licensing requirements for beauty salons, the supply curve for salon services would shift to the left

• True
• False

Supply curves are usually upward sloping

• True
• False

In moving along a demand curve, everything is held constant except buyers' income

• True
• False

A shortage in the bread market can cause the price of bread to rise

• True
• False

The sum of consumers' surplus and producers' surplus is maximized at equilibrium

• True
• False

If rice is an inferior good, a decrease in income will cause the equilibrium price of rice to rise

• True
• False

The terms Scarcity and Shortage are synonyms.

• True
• False

In general, all markets equilibrate at the same speed

• True
• False