Microeconomics - Unit 3

If Domino’s Pizza decides to drop the price of their pizza,

what would most likely happen to the demand for the pizza?

• Demand would decrease

• Demand would increase

• Demand would remain the same

• Demand would fluctuate

A market structure in which a few very large sellers dominate the industry is called

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Which term applies when a company makes more of a product than it can sell?

• Surplus

• Dividend

• Profit

• Shortage

What direction do supply curves almost always go?

• Down and to the right, starting in the top left

• Straight across from left to right (horizontal)

• Up and to the right, starting in the lower left

• Straight up and down (vertical)

The graph at left is of the Supply and Demand of Milkshakes.

Based on the graph, what will happen to the equilibrium price if 5000 more people move into the area that is making Milkshakes?

• It will stay the same

• It will go up

• It will go down

• It will be unpredictable

If apple juice is a substitute good for orange juice, what will happen if flooding destroys most of Florida's orange crop?

• Demand for apple juice would stay the same

• Demand for apple juice would drop

• Demand for apple juice would be unpredictable

• Demand for apple juice would go up

The quantity of goods and services offered by producers is also known as ______ ?

• Supply

• Demand

• Equilibrium

• Market

In a market system, economic decisions such as what goods are produced,

how goods are produced, and the prices of goods are made by       .

• kings and queens

• landowners

• private citizens

• elected officials

Which statement best explains the law of supply?

• A supplier will offer more products at a higher price and less at a lower price.

• A supplier will offer fewer products for sale at a higher price and will offer more at a lower price.

• A supplier will determine the price on the supplies.

• A supplier will offer a product depending on the demand.

By analyzing the supply and demand graph of Milkshakes at left,

what will most likely happen to the equilibrium price if another vendor begins to sell Milkshakes?

• It will stay the same.

• It will go up.

• It will go down.

• It will be unpredictable.