Supply And Demand Quiz

The graph represents: Demand or Supply?

• Demand
• Supply

Assume that pens and pencils are substitutes. If the pencil manufacturers experience a decrease in the price of wood, which of the following will most likely occur?

• The demand curve for pencils will shift to the left.

• The supply curve for pens will shift to the right.

• The demand curve for pens will shift to the left.

• The supply curve for pencils will shift to the left.

Two tropical nations, Costa Luna and St. Pierre, hire tour boat operators in a perfectly competitive labor market. If the demand for tour boat operators in Costa Luna falls, wages in Costa Luna are likely to:

• rise, and the supply of workers in St. Pierre would decrease.

• stay the same
• fluctuate
• fall, and the supply of workers in St. Pierre would increase.

In which of the following market structures do firms face low barriers to entry?

Select all answers that apply.

• 
  monopoly

• monopolistic competition

• oligopoly

• perfect competition

In a free market, as price increases the quantity supplied will __________ while the quantity demanded will __________.

• increase; decrease

• remain the same; increase

• decrease; remain the same

• decrease; increase

Which of the following would cause a leftward shift of the supply curve as shown?

• a decrease in the price of an input needed to produce the final product

• a decrease in consumer wages

• an increase in subsidies for the production firm

• an increase in the price of an input needed to produce the final product

Susie and Sally open a lemonade stand in their neighborhood and within the first day, they sell out of lemonade in just a few hours. The next day, Susie and Sally again sell out of lemonade in a few hours. Because they can only carry so many supplies to their stand, they decide to raise the price of their lemonade. Susie and Sally's choice best demonstrates which of the following?

• Competition
• Scarcity
• Supply and demand

• Monopoly

An early winter frost destroys a large portion of the American tomato crop, drastically reducing supply, resulting in an _______ in price and a __________ in quantity demanded.

• increase, decrease

• decrease, increase
• decrease, increase
• decrease, increase

Assume that bicycles and skateboards are substitutes. If the skateboard manufacturers experience a decrease in the price of wheels, which of the following will most likely occur? What is the curve?

• The price of bicycles will increase.
• The demand curve for skateboards will shift to the left.
• The demand curve for skateboards will shift to the right.
• The demand curve for bicycles will shift to the left.

In what market do businesses sell goods and services to households?

• Product Market

• Factor Market

• Resource Market