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Determinants of Price Practice

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

Jack in the Box finally opens in Michigan, offering the delicious Sourdough Jack Burger.


How will this affect the price of fast food?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will increase supply, thereby increasing price

2.

Due to a surplus, the price of beef has dropped tremendously.


How will this affect the price of chicken?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will increase demand, thereby decreasing price

3.

The organic food movement refuses to use modern fertilizers and pesticides in farming.


How will this affect the price of fruits and vegetables?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will decrease supply, thereby decreasing price

4.

There has been an outbreak of E. Coli bacteria in lettuce.


How will this affect the price of lettuce?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will decrease demand, thereby increasing price

5.

The Department of Transportation requires that cars have a fuel efficiency of 54.5 miles per gallon by 2025.


How will this affect the price of cars?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will decrease supply, thereby decreasing price

6.

The United States loosens its restrictions on immigration.


How will this affect the price of most goods and services?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will increase demand, thereby decreasing price

7.

Fracking allows companies to extract oil or natural gas from the tiniest cracks between rocks.


How will this affect the price of gasoline and natural gas?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will increase supply, thereby increasing price

8.

Art Van Furniture and Pier 1 both recently filed for bankruptcy.


How will this affect the price of furniture and stupid knick knacks to put on your coffee table?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will decrease supply, thereby decreasing price

9.

The price of peanut butter is soaring during a shortage.


How will this affect the price of jelly?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will decrease demand, thereby increasing price

10.

The minimum wage in Michigan is set to increase by at least 20 cents every year for the next ten years.


How will this affect the price of most goods and services?

a)

This will increase demand, thereby increasing price

b)

This will decrease demand, thereby decreasing price

c)

This will increase supply, thereby decreasing price

d)

This will decrease supply, thereby increasing price

e)

This will increase demand, thereby decreasing price