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WorksheetsEconomics Unit 2 Study Quiz
Total questions: 62
Worksheet time: 50mins
The law of demand argues that as prices rise
the quantity demanded will fall
the quantity demanded will rise
the demand curve will shift to the right
no change will occur
This part of the market determines DEMAND
buyers
sellers
suppliers
store owners
What does this curve represent?
supply
equilibrium
demand
surplus
The diagram represents a
increase in demand
decrease in demand
change in quantity demand
none of the above
What is the Equilibrium Price?
1
2
3
4
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
Demand can be best defined as
an individual's need or desire for a good or service at a given price.
how much of a good or service is being produced.
The only thing that causes a movement along a supply or demand curve (Change in Quantity Demanded):
Price
Quantity
Climate
Weather
Goods that are bought and used together are
complementary goods
substitute goods
income goods
unrelated goods
Which of the following is likely to increase the demand for peanut butter?
Fewer children in the population
News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.
A big increase in the price of jelly.
A report from the Surgeon General of the United States that eating peanut butter makes people nutty.
What is caused when the demand for a product or service is higher than the supply?
shortage
consumer
surplus
equilibrium
What is caused when the demand for a product or service is lower than the supply?
shortage
consumer
surplus
equilibrium
What is the equilibrium price of the graph?
20
40
60
No equilibrium price shown
If the original price was $40 and we raised the price to $60, what would most likely happen?
Demand would decrease and a surplus would be created
Demand would increase and a shortage would be created
Not enough information to make an accurate prediction
No change would occur
If the original price was $40 and we lower the price to $20, which option would be correct?
A surplus of 50 would be created
A shortage of 50 would be created
A shortage of 100 would be created
A surplus of 100 would be created
Which statement is correct about the Law of Supply?
When the price of a good decreases, quantity supplied decreases
When the price of a good decreases, quantity supplied increases
Apple manufactures the iMac G3 with all original technology with very little interest from consumers. What causes Apple to not sell many of these computers?
Quantity Supplied is Greater than Quantity Demanded
Quantity Supplied is Less than Quantity Demanded
According to the supply and demand schedule, what is the equilibrium price?
$1.00
$1.25
$1.50
$1.75
Based on the movement of the supply curve, did the equilibrium price increase or decrease?
Increase
Decrease
Which answer choice does this image represent?
Quantity Supplied is Greater than Quantity Demanded
Quantity Supplied is Less than Quantity Demanded
The newest Jordan's release caused Foot Locker to sell out of their supply in less than one hour. What caused the Jordan's to sell out so quickly?
Quantity Supplied is Greater than Quantity Demanded
Quantity Supplied is Less than Quantity Demanded
Based on the movement of the supply curve, did the equilibrium price increase or decrease?
Increase
Decrease
Which answer choice does this image represent?
Quantity Supplied is Greater than Quantity Demanded
Quantity Supplied is Less than Quantity Demanded
Which graph below shows the SUPPLY CURVE?
A
B
C
D
This part of the market determines SUPPLY
buyers
sellers
consumers
Impossible to determine
The diagram represents a(n)
increase in supply
decrease in supply
change in quantity supplied
none of the above
How many cup holders are producers willing to supply at a price of $2.50?
3,000
4,000
5,000
7,000
When the demand for a product or service is higher than the supply this causes what?
shortage
consumer
surplus
equilibrium
A decrease in the price of a good will
increase supply.
decrease supply.
increase quantity supplied.
decrease quantity supplied.
Which image shows what will happen if the United States government gives U.S. Car producers Subsidies
If we raise the price to $60 what happens to Quantity Supplied?
Quantity supplied will decrease to 100
Quantity supplied will increase to 200
Quantity demanded will decrease to 50
No change
If we lower the price to $20 what will happen to the quantity demanded?
Quantity demanded will increase to 200
Quantity demanded will decrease to 100
Quantity supplied will decrease to 50
No change
Which of these best defines equilibrium in a market?
a situation in which quantity supplied is greater than quantity demanded
a situation in which quantity demanded is greater than quantity supplied
a situation in which quantity supplied and quantity demanded are equal
a situation where a minimum price is set
A situation in which the quantity supplied is greater than the quantity demanded is
a shortage
a surplus
a price floor
a price ceiling
A situation in which quantity demanded is greater than quantity supplied is
a shortage
a surplus
a price floor
a price ceiling
Which of the following demonstrates price equilibrium? (Could be more than one answer)
Which of these demonstrates a surplus of goods?
Which of these demonstrates a shortage of goods?
At $9 the market is experiencing
a surplus
a shortage
equilibrium
a quota
Assuming this is the market for bottled water, this shift could be caused by
Hurricane Irma
A population decrease
An increase in technology
Government Subsidy
Record Peach Harvest—Price Lowest in a Decade How will this information likely affect the supply curve for frozen peach pies?
Panel a
Panel b
Panel c
Panel d
Average Wages Decline for Workers Around the Country How will this information likely affect the demand curve for movie tickets?
Panel a
Panel b
Panel c
Panel d
U.S. Car Company to Close Six Factories How will this information likely affect the supply curve for the company’s minivans?
Panel a
Panel b
Panel c
Panel d
Congress Passes New “Sugar Tax” How will this information likely affect the supply curve for sugar?
Panel a
Panel b
Panel c
Panel d
Hospitals Report Dramatic Decrease in Births How will this information likely affect the demand curve for baby strollers?
Panel a
Panel b
Panel c
Panel d
The President Approves Subsidies for Solar Energy Industry How will this information likely affect the supply curve for solar energy panels?
Panel a
Panel b
Panel c
Panel d
Looking at the graph: to return to equilibrium, price would need to:
Increase
Decrease
Stay the same
Shift demand curve
An effective price floor must be set above equilibrium, resulting in:
a shortage
a surplus
limited choices
None of the above
If the government set the price at $700, would that be a price ceiling or floor?
Price Ceiling
Price Floor
Neither
If an effective rent ceiling is eliminated, which of the following is most likely to occur in the rental housing market?
An increase in the demand for housing, resulting in a decrease in the quantity of housing supplied
An increase in the demand for housing, resulting in an increase in the quantity of housing demanded
An increase in rents, resulting in an increase in the quantity of housing supplied
A decrease in rents, resulting in an increase in the quantity of housing supplied
When a price ceiling is imposed in a market:
A surplus results
Sellers of the product are made better off
A shortage results
Quantity supplied is greater than the quantity demanded
At the price, neither a surplus or a shortage exists
equilibrium
consumer surplus
producer's surplus
dead weight
A _______________ is a maximum price sellers are allowed to charge for a good. It's an upper limit for the price.
equilibrium
shortage
surplus
price ceiling
This is the minimum price buyers are required to pay for a good. It's a lower limit for the price.
equilibrium
shortage
price floor
price ceiling
A price ceiling will result in a
shortage
surplus
equilibrium price
equilibrium quantity
A price floor will result in a
shortage
surplus
equilibrium price
equilibrium quantity
What is the equilibrium quantity in this graph?
$1.50
$1.00
600
800
At the price of $1.00, there is a
shortage of 200
surplus of 200
shortage of 400
surplus of 400
If the government set the price at $300, what would be the result?
Surplus of 4,000
Surplus of 2,000
Shortage of 4,000
Shortage of 2,000
If the government creates a price floor of $80, which one of the following statements is correct?
The quantity demanded = 60
The quantity supplied = 180
There is a shortage of 140
The price floor is ineffective
In a free market, the equilibrium price would be
$10
$8
$6.
$4
If the government institutes a price ceiling of 30$, which of the following statements will be correct?
There is a shortage of 90
There is a surplus of 90
There is a shortage of 140
The price ceiling is ineffective
