Demand and supply reading Review

What effect does a change in demand or supply have on the market equilibrium?

• No effect

• Shifts the equilibrium to a new position

• Increases the equilibrium price

• Decreases the equilibrium quantity

What is the intersection of the demand and supply curves called?

• Disequilibrium

• Surplus

• Equilibrium

• Shortage

What is the quantity of smoothies at the initial equilibrium?

• 3,000 smoothies

• 4,000 smoothies

• 5,000 smoothies

• 6,000 smoothies

What is the effect of higher input costs on supply?

• Supply fewer smoothies

• Supply more smoothies

• No effect

• Increase demand

What event caused the shift in the supply of blueberry smoothies?

• Increase in demand

• Drought

• New supplier

• Price drop

How does the price change as supply decreases?

• Price decreases

• Price increases

• Price remains constant

• Price fluctuates

What does the initial equilibrium represent in the graph?

• Pre-drought conditions

• Post-drought conditions

• Future conditions

• Hypothetical conditions

What effect did the drought have on the equilibrium price and quantity of smoothies?

• Decreased price and increased quantity

• Increased price and decreased quantity

• Increased price and increased quantity

• Decreased price and decreased quantity

At what price did the quantity of smoothies demanded and supplied become equal after the price adjustment?

• $2.00

• $2.50

• $3.00

• $3.50

How do the events shift the demand and supply curves?

• Both curves shift to the left

• Both curves shift to the right

• Demand shifts left, supply shifts right

• Demand shifts right, supply shifts left