Supply and Demand Review 2023

When moving along the demand curve, which of the following changes?

• the consumers’ income

• the prices of other goods

• the number of buyers

• the price of the good

If there is an increase in demand for a good, what will most likely happen to the price and quantity of the good?

• increase increase

• increase decrease

• decrease decrease

• decrease increase

Suppose that the price of lettuce used to produce tacos increases. As a result, the equilibrium price of a taco _____ and the equilibrium quantity _____.

• rises; increases

• rises; decreases

• falls; increases

• falls; decreases

• does not change; decreases

Which would an economist consider a substitute for coffee?

• Tea

• Water

• Soda

• Juice

Which would an economist consider a complement to coffee?

• Tea

• Water

• Donuts

• Spaghetti

Which of these BEST describes the influence of high prices on the behavior of consumers?

• They are an incentive for consumers to buy less

• They encourage consumers to modify their supply schedules

• They are an incentive for consumers to buy more

• They have no effect on Consumers

The supply of goods matches the demand of goods

• surplus

• demand curve

• equilibrium price

• shortage

A sum of money granted by the government to a business is known as a ____

• shortage

• surplus

• subsidy

• price

The supply and demand model shows _____ and ______

• price, surplus

• price, quantity

• surplus, shortage

• surplus, quantity

Which of the following is likely to increase the demand for peanut butter?

• Fewer children in the population
• News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
• A big increase in the price of jelly.
• A report from the Surgeon General of the United States that eating peanut butter makes people nutty.