Supply and Demand Shifters quiz

By the law of demand:

• As price increases, quantity demanded increases

• As price increases, quantity demanded decreases

• The demand curve shifts to the right

• The demand curve does not shift, but results in a movement along the curve.

By the law of supply:

• As price increases, quantity supplied increases

• As price increases, quantity supplied decreases

• Does not shift the supply curve, but results in a movement along the curve.

• Shifts the supply curve to the right.

All of the following will shift the demand curve to the RIGHT for Coca-cola except:

• Consumers expect higher prices for Coca-cola in two months due to higher sugar prices

• An increase in the price of Sprite, a substitute for Coca-Cola

• A new study shows that Coca-Cola helps prevent lung cancer

• A decrease in the price of Phosphoric acid, a key ingredient for Coca-Cola

Take the market for soccer balls. If the price of a complement of soccer balls decreases,

• The demand curve for soccer balls will shift to the right.

• The demand curve for soccer balls will shift to the left.

• There will be no shift in the demand curve for soccer balls, but instead there will be movement along the demand curve to the right.

• There will be no shift in the demand curve for soccer balls, but instead there will be movement along the demand curve to the left

Next year, Toyota has decided to close all of its factories in the US. This causes:

• A shift to the right of the supply curve for Toyota cars.

• A shift to the left of the supply curve for Toyota cars..

• A shift to the left of the demand curve for Toyota cars.

• A movement along the supply curve, which results in a decrease in the quantity supplied

Which of the following will cause a movement ALONG the supply curve for strawberries?

• Consumer demand for strawberries increase 10x fold due to change in dietary trends.

• Labor costs increase, prompting strawberry farm owners to have to pay more for maintenance.

• A new area of fertile land is purchased for strawberry farms.

• All of the above

An increase in the price of textbooks will

• Definitely result in a shift to the right of the supply curve.

• Definitely result in an increase in the quantity demanded of textbooks.

• Definitely result in a decrease in the quantity demanded of textbooks.

• Definitely result in a shift to the left of the demand curve.

Demand for carry-on luggage plummeted due to the pandemic. Some producers maintained the same quantity produced for carry-on luggage. This generated a ___________ because quantity supplied was ______ than the quantity demanded.

• Shortage; greater

• Shortage; less

• Surplus; greater

• Surplus; less

An increase in the price of wooden boats, a substitute for rubber duckies, will:

• Decrease the quantity demanded of rubber duckies

• Increase the quantity demanded of wooden boats.

• Shift the demand curve for wooden boats to the left.

• Shift the demand curve for rubber duckies to the right.

An increase in the price of rubber, an input (resource) for erasers, will:

• Cause the demand curve for erasers to shift to the right.

• Cause the supply curve for erasers to shift to the left.

• Cause the demand curve for white-outs, a substitute for erasers, to shift to the left.

• None of the above.