Supply and Demand

Front

The law of demand states that if the price of CD’s rise, consumers will

Back

Buy fewer CDs

Front

The law of supply states that if the price of CD’s rise, suppliers will:

Back

Supply more CDs

Front

Which of the following is NOT a determinant of the supply of peanut butter? Options: The price of peanuts, The wages of peanut butter factory workers, The income of peanut butter consumers, Existing peanut butter making technology

Back

The income of peanut butter consumers

Front

Which of the following will cause an increase in demand for snowboards? Options: More costly production methods, A decrease in the price of lift tickets at resorts in Colorado, A decrease in consumer income, A decrease in the population

Back

A decrease in the price of lift tickets at resorts in Colorado

Front

What does a “surplus” (extra amount) of goods in a market imply? Options: Prices are too high, Prices are too low, Supply is too low, Demand is too high

Back

Prices are too high

Front

The United States imports many cars from Japan. Suppose that the price of material(s) that Japan uses in making cars declines. What is the INITIAL (first) effect this will have on the Japanese car manufacturers?

Back

The input costs of Japanese made cars in the US will decrease 

Front

What happens to the market for gasoline when Americans revive their love of SUVs and the newly remodeled, but still "gas guzzling" Hummer?

Back

Demand for gasoline will increase

Front

Due to a disappointing economy, Americans are cutting back on the family vacation road trips. What happens to the market for gasoline?

Back

Demand for gasoline will decrease 

Front

Costs of producing gasoline has increased due to rising energy costs. What happens to the market for gasoline?

Back

Supply for gasoline will decrease

Front

What happens to the market for gasoline if drilling is allowed in the Alaskan Arctic Preserve?

Back

Supply for gasoline will increase