Supply and Demand Test Review

What happens to the market for oranges when a cold snap hits Florida?

• supply goes down and prices go up.
• supply goes down and prices go down.
• supply goes down and prices stay the same.
• They give them out for free in the name of philanthropy.

People decide to escape cold weather in New York and travel to the Caribbean. How would this affect the price of hotel rooms in the Caribbean?

• Cold weather in New York drives the demand and thus the price down in the Caribbean.
• Cold weather in New York does not affect the price of a hotel room in the Caribbean.
• Cold weather in New York drives the demand up and the price increases for hotel rooms in the Caribbean.
• It doesn't matter because no one wants to visit the Caribbean anyway.

When a war breaks out in the Middle East and the global supply of oil decreases, the price of gasoline in the United States

• goes up.
• goes down.
• stays the same.
• encourages people to buy cars that consume a great deal of gas.

Supply and demand ultimately determine the ______ equilibrium and _______ equilibrium of a product.

• price/quantity
• imports/exports
• supply/demand
• market/command

Imagine the market for pizza. If the cost of wheat, used to make dough, increases then which graph would most likely occur?

• Graph A
• Graph B
• Graph C
• Graph D

An increase in labor costs (minimum wage goes from $7.25 to $100 per hour) would have a negative effect on the business. Which of the following graphs show an increase in labor costs leading to a decrease in the ability to supply?

• Graph A
• Graph B
• Graph C
• Graph D

The "stuff" that sellers are willing and able to sell is known as

• supply
• law of supply
• supply schedule
• supply curve

Based on the law of supply, when consumers are willing to pay high prices for products, the quantity supplied

• increases.
• decreases.
• diminishes.
• is unchanged.

A table that shows the relationship between the price of a good and how much a supplier is willing to sell is the

• supply schedule
• demand curve
• demand schedule
• market schedule

Unlike the demand curve, the supply curve slopes

• upward.
• downward.
• there is no slope.
• sideways