Shifting Supply and Demand

McDonald's just reduced the price of the Big Mac. Show the change in the market for Whoppers.

• Price and Quantity increase

• Price and Quantity decrease

• Price increases and Quantity decreases

• Price decreases and Quantity increases

The price of rubber decreased by 30%. Show the change in the market for car tires.

• Price and Quantity increase

• Price and Quantity decrease

• Price increases and Quantity decreases

• Price decreases and Quantity increases

Denny's just opened a store in Griffin, making it the 5th breakfast food restaurant in the area. Show the change in the market for breakfast food.

• Price and Quantity increase

• Price and Quantity decrease

• Price increases and Quantity decreases

• Price decreases and Quantity increases

Zaxby's branches out and begins opening stores in the Northeast US for the first time, increasing the amount of people exposed to Zaxby's food. Show the change in the market for Zaxby's

• Price and Quantity increase

• Price and Quantity decrease

• Price increases and Quantity decreases

• Price decreases and Quantity increases

Demand Increase, Demand Decrease, Supply increase, Supply decrease

d

c

b

a

Demand Increase

Supply Increase

Demand Decrease

Supply Decrease

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

Which of the following scenarios would result in the shifting demand curve shown here?

• Increase in consumers' incomes

• A good or service becomes out of style

• Suppliers find new resources

• Government decides to tax the good/service more

Which curve shows what would happen to the overall supply of coffee in Citrus Heights if most of the coffee shops closed down.

How does an increase in taxes on the production of a good affect the supply curve?

• It shifts the supply curve to the right.

• It shifts the supply curve to the left.

• It causes a movement along the supply curve.

• It has no effect on the supply curve.

The diagram represents a:

• increase in demand

• decrease in demand

• change in quantity demanded

• none of the above