Shift in Supply and Demand

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

• Pesticides on apples linked to mouth cancer.

• Storms destroy apple orchards.

• An apple a day really does keep the doctor away.

• New genetic strain leads to apple trees that produce twice as many apples.

Which of the following will cause an increase in demand for snowboards?

• 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

Americans revive their love of SUV’s and the newly remodeled, but still “gas guzzling” Hummer. What happens to the market for gasoline?

• Demand for gasoline will decrease

• Demand for gasoline will increase

• Demand for gasoline will stay the same

Label: Demand Increase, Demand Decrease, Supply increase, Supply decrease

d

c

b

a

Supply Decrease

Supply Increase

Demand Increase

Demand Decrease

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

Demand Increase, Demand Decrease, Supply increase, Supply decrease

d

c

b

a

Demand Increase

Supply Increase

Supply Decrease

Demand Decrease

The diagram represents a

• increase in demand

• decrease in demand

• change in quantity demand

• none of the above

A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?

• 
• 
• 
• 

Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States?

• a decrease in the price of DVDs

• a decrease in the price of DVD players

• a change in consumer preferences toward watching movies in movie theaters rather than at home

• a decrease in the number of people in the United States

Equilibrium quantity must decrease when demand
(the graph is not actually part of the question)

• increases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.

• increases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.

• decreases and supply does not change, when demand does not change and supply increases, and when both demand and supply decrease.

• decreases and supply does not change, when demand does not change and supply decreases, and when both demand and supply decrease.