Week 3 Econ Quiz

What determines the prices of goods and services?

• Supply

• Demand

• Supply and demand

• Goods

What exists when quantity supplied is greater than quantity demanded?

• Surplus

• Shortage

• Overflow

• Mass outrage

A market is said to be in equilibrium when

• when demand is higher than the supply

• when demand is lower than the supply

• when the demand and supply quantities are equal

• when the supply is doubled the demand

the price at which a good is bought and sold in a market equilibrium is called

• retail price

• equilibrium price

• discount price

• base price

When demand is greater than supply, you end up with a...

• shortage

• surplus

• equilibrium

• supply

The law of demand states that if the price of CD’s rise, consumers will

• Buy more CDs
• Buy fewer CDs
• Quantity demanded will not change

The law of supply states that if the price of CD’s rise, suppliers will

• Supply more CDs
• Supply fewer CDs
• Quantity supplied will not change

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

• Demand for gasoline will decrease 
• Demand for gasoline will increase
• Demand for gasoline will stay the same

Due to a disappointing economy, Americans are cutting back on the family vacation road trips. What happens to the market for gasoline?

• Demand for gasoline will decrease 
• Demand for gasoline will increase
• Demand for gasoline will stay the same

What will happen to the price of T-Shirts if T-Shirt businesses now use machines that produce twice as many shirts in one hour?

• The price will increase

• The price will decrease