Supply and Demand Shifters

Elijah and Aiden are planning a snowboarding trip. 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

Benjamin's company has developed a new technology that advances the rate at which furniture can be assembled. Why does this change the supply?

• Change in cost of production

• Changes in number of producers

• Changes in expectations

Avery and Isla are discussing the impact of new drilling activities in the Alaskan Arctic Preserve on the oil and gasoline market. What happens to the market for gasoline?

• Supply for gasoline will decrease

• Supply for gasoline will increase

• Supply for gasoline will stay the same

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

Abigail runs a bakery and notices that the price of flour, a key raw material, has decreased. What effect does this have on the supply curve for her baked goods?

• The supply curve shifts to the left

• The supply curve shifts to the right

• The supply curve remains unchanged

William and Charlotte are observing the market for bicycles. The graph shows which of the following changes in the market?

(actually use this graph to answer the question)

• a decrease in demand (shift) and a decrease in quantity supplied

• a decrease in demand (shift) and a decrease in supply

• a decrease in quantity demanded and a decrease in quantity supplied

• a decrease in quantity demanded and a decrease in supply (shift)

In the circular flow model, the product market describes _____.

• stores that sell goods and services to households

• the government paying for public goods

• households selling their labor to businesses

• households receive income from businesses

Which arrows on this diagram would represent the transaction between Grace who rents her office to Homework Inc., a company that provides tutoring services?

• 2,3

• 4,7

• 1,2

• 5,6

Maya is studying 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.

Benjamin is starting a peanut butter business. Which of the following is NOT a determinant of the supply of peanut butter?

• The price of peanuts

• The wages of peanut butter factory workers

• The income of peanut butter consumers

• Existing peanut butter making technology