WorksheetsUnit 8 Review- Supply and Demand
Total questions: 40
Worksheet time: 38mins
When the demand curve shifts to the left, this suggests demand has
increased
decreased
Quantity demanded has increased
Quantity demanded has decreased
When the demand curve has shifted to the right, this suggests demand has
increased
decreased
quantity demanded has increased
quantity demanded has increased
When price increases, quantity demanded
increases
decreases
supply would decreases, not quantity supplied
supply would increase, not quantity supplied
If input costs increase, what will a producer have to do to avoid losing revenue?
Raise price
Lower Price
Decrease supply
Increase supply
A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?
The supply will probably go up
The supply will probably go down
According to a recent newspaper story, more Americans own dogs than ever before. As a result, ten new companies start making and selling dog food. What will probably happen to the overall supply of dog food?
The supply will probably go up.
The supply will probably go down.
If the price of printers goes down, what happens in the market for ink cartridges?
Supply increases.
Supply decreases.
Demand increases.
Demand decreases
measure of the way in which quantity supplied responds to a change in price
short run
negative returns
Supply elasticity
long run
A hurricane wipes out an orange crop in Florida, sharply affecting the supply of oranges. Which chart demonstrates this concept?
The prices for houses steadily increase, causing more people to want to sell their homes. Which of these demonstrates this concept?
Identify the correct determinant of supply.
Example: If the government requires factories to reduce pollution, complying will initially increase costs of production in the market and reduce supply.
Government regulation
Cost of resources
Worker productivity/motivation
Change in technology
Example: If airlines expect prices for airline tickets to fall in September when families are less likely to travel due the school calendar, they will supply more during the summer months when they can charge higher fares.
Examples: When auto manufacturer were able to implement robotics on the production line, automobiles were produced more quickly and at a smaller cost per unit. This allowed the industry to supply more cars.
The United Nations recently called for governments to stop the $5 trillion dollars they give to oil companies every year. This would likely cause a drop in the supply of oil products like gasoline. Which determinant of supply does this illustrate?
Worker productivity/ motivation
Government taxes/ subsidies
Change in technology
Complements
On the market demand and supply graph, the vertical or Y axis shows
demand.
equilibrium.
prices.
quantity.
On the demand and supply graph, the horizontal or X axis shows
demand.
equilibrium.
prices.
quantity.
When the price of good A rises, people start to drink good B. In this case, what is good B considered?
luxury good
complementary good
substitute good
normal good
When the price of hot dogs decreases and the demand for hot dog buns increases, this explains the demand of
Complementary goods
Capital Goods
Substitute Goods
Consumer Goods
Goods for which demand goes down as income goes up are better known as
Inferior Goods
Normal Goods
Public Goods
Private Goods
A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in
Population
Price of Substitute Good
Price of Complementary Good
Consumer Preferences/Tastes
