Supply & Demand Review Quiz

When the demand curve shifts to the left, this suggests demand has

• increased

• decreased

• Quantity demanded has increased

• Quantity demanded has decreased

When price increases, quantity demanded

• increases

• decreases

• supply would decreases, not quantity supplied

• supply would increase, not quantity supplied

Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.?

• Supply would increase

• Supply would Decrease

• Supply would stay the same

• India is not a real country

If a wave of Peruvian immigrants migrated to south Florida, how might this affect the demand for Peruvian goods in the region?

• Demand would increase

• Demand would decrease

• Demand would be unchanged

• Quantity Demanded would increase

When the price of Nike brand shoes increases, we will probably go purchase a brand like Adidas or Pumas instead. Which of the following best explains this behavior?

• Substitution Effect

• Income Effect

• Complement Goods

• Consumer expectations

In Jim's household, everyone consumes and enjoys milk. Recently, the price on milk increased by two dollars, but despite this increase, Jim and his family still continue to buy the same amount of milk, for they consider it a necessity. Jim's family's demand for milk would be considered fairly

• elastic

• inelastic

When the price on Dasani bottle water decreased, Brad quit buying Nestle bottled water and switched over to Dasani. Brad's demand for Nestle water is fairly

• inelastic

• elastic

When price increases, quantity supplied

• increases

• decreases

In the short term, supply tends to be inelastic. In the long term, supply tends to be more elastic. Thus, the most important factor determining elasticity of supply is

• Time

• Price

• Consumer

• Quantity

If input costs increase, what will a producer have to do to avoid losing revenue?

• Raise price

• Lower Price

• Decrease supply

• Increase supply