WorksheetsEcon U2 Review. Supply Demand
Total questions: 40
Worksheet time: 9mins
1. The Law of Demand indicates that:
People only want a product with diminishing utility
There is a direct relationship between price and quantity
A person has to be willing but not able to purchase an item
There is an inverse relationship between price and quantity
When there is a stable demand curve, the only thing that will cause a change in quantity demanded is
A change in number of buyers
A change in the price of a product
A change in consumer taste or preferences
A change in consumer income
An increase in the price of Sprite will result in:
Movement downwards along the curve for Sprite
Movement upwards along the curve for Sprite
Movement upwards along the curve for 7-Up
Shift downwards and to the left in demand for Sprite
If the price of hot dogs decrease, then the _____ for hot dog buns will ______
Demand; increase
Demand; decrease
Quantity demanded; decrease
Quantity demanded; increase
Which of the following illustrates the concept of diminishing marginal utility
Joe doesn’t like the last car he bought
Joe stops buying cars
Joe keeps buying cars
Joe receives less enjoyment from his 5th car than his 4th
If demand increases
There will be a shift to the left
There will be a shift to the right
There will be movement down the curve
There will be movement up the curve
A shift to the demand curve can be caused by a change in
Number of buyers or market size
Consumer Income
Consumer expectations
All of these
The graph above is a...
Demand curve
Supply curve
Production possibilities curve
parabola
The graph above is a ...
Demand Curve
Supply curve
parabola
Production possibilities curve
The graph above is a ...
Demand curve
Supply Curve
Parabola
A production possibilities curve.
What will happen to the supply curve if new technology reduces the cost of production in an industry?
It will shift right
It will shift left
It will cause a movement along the curve
Not enough information to determine what will happen
A change in quantity supplied means a change in
Government Regulations
Taxes
Productivity
Price
Which of the following best illustrates the concept of “diminishing marginal utility”?
When the price of tickets increase to $10., Bill decides not to take a date
The price didn’t matter, She just had to have that new dress for the dance
Once Tom got a job he had enough money to fill-up at the gas station
The 1st hot dog was great, the 2nd was good, but Bill decided he was full
Chips sell for $3 per bag. Cost of production is $1.75 per bag. We sell 20 bags! $25.00 represents :
Number of bags of chips sold
Cost of production
Profits
Revenue
____________ = fixed costs & _____________ = variable costs
Rent; Machinery
Rent; Utilities
Wages; Materials used in production
Utilities; Buildings
What is the law of supply?
A producer has to be both willing and able to produce an item
There is an indirect relationship between price and quantity
One person's spending is another person's income
There is a direct relationship between price and quantity
Which of the following will shift the supply curve to the right today?
Input prices rise
New technology leads to more production
Sales taxes increase
Job layoffs cuts workforce in half
Demand is the amount of goods and services a consumer is ________ to buy at various prices in a given time period.
Able and profitable
Willing and acceptable
Unwilling or Unable
Willing and able
If the government incentivizes home builders by offering subsidies to new construction
The supply curve for homes will shift right
The demand curve for homes will shift right
The demand curve for homes will shift left
Prices for homes will rise, but more homes will be sold
Which of the following is NOT a fixed cost for “Great Bakery” in Dallas?
Loan payments for the bakery building
Monthly insurance premiums
Flour and sugar materials
Salaries of top employees
Which of the following will increase the supply of corn?
A severe drought in the corn belt
A decrease in the current price of corn
An increase in the price of fertilizer
An overall improvement in agricultural technology
Demand refers to the relationship between
Price of a good and amount supplied by producers that consumers want to buy
Producers and the capital resources they use
Consumers and products
Price of a good and quantity of that good that consumers want to purchase
Which is consistent with the law of demand?
Decrease in the $ of a gum causes an increase in the ammount of gum wanted
Increase in the $ of gum causes an increase in the quantity of gum demanded
Increase in the $ of gum causes no change in the quantity of gum demanded
Decrease in the $ of gum causes a decrease in the quantity of gum wanted
If two goods are substitutes for each other, an increase in the price of one will
Decrease the quantity demanded for the other
Increase the demand for the other
Increase the quantity demanded for the other
Decrease the demand for the other
Payment on a loan that one took out to start a business are considered
Responsive
Revenue
Variable costs
Fixed costs
Government subsidies have the effect of
Forcing producers to leave the market
Reducing supply
Lowering the cost of production
Raising costs
The demand curve
Slopes downward from left to right
Slopes upward from left to right
Relates price to quantity supplied
Shows a direct relationship between price and quantity demanded
If productions costs increase, there will be a decrease in
Demand
Advertising
Revenues
Supply
Which of the following is TRUE?
Labor and raw materials are fixed costs
Variable costs are more difficult to change than fixed costs
Variable costs change with changes in output
Fixed costs reflect the costs of items a busines can change as needed
The relationship that exists between price and quantity demanded is described as
Inverse
Reverse
Direct
Parallel
(Total revenues - Total costs) are equal to
Total money flow
Profit
Revenue
Expenses
When we talk about S.C.E.N.T. we are talking about...
Shifting the Demand curve.
Shifting the Supply Curve.
Movement along the Demand Curve.
Movement along the supply curve.
When we talk about P.I.N.E.R. we are talking about...
Movements along the demand curve.
Movements along the supply curve.
Shifting the supply curve.
Shifting the demand curve.
A change in __________ will cause a movement along a supply or demand curve.
Perception of the item.
Technology.
Subsidy to make that item.
Price of the item.
The law of diminishing marginal utility indicates that :
The cost of consuming goods decreases with an increase of goods purchased.
Surplus exists because price is above equilibrium
Prices favor neither the producer nor the consumer
As each additional unit of good is consumed, the satisfaction received from consuming that good decreases
What is the law of supply?
There is a direct relationship between price and quantity
There is an indirect relationship between price and quantity
A producer has to be both willing and able to produce an item
Producers will only create a product with diminishing marginal returns
Demand is the amount of goods and services a consumer is ________ to buy at various prices in a given time period.
Able and profitable
Willing and acceptable
Willing and able
Demand and supply
When consumers buy more goods because the price is lowered
There has been a change in demand.
There has been a change in quantity demand.
There has been a change in supply.
There has been a change in quantity supplied.
A change in quantity supplied means a change in
Price.
Subsidies.
Taxes.
Technology.
Epic Games sells 100,000 spiderman skins for Fortnite for $10.00 each. This totals $1 million dollars. In this example 1 million dollars is Epic Games...
Profit
Revenue
Cost of production.
