WorksheetsSupply And Demand Quiz
Total questions: 25
Worksheet time: 13mins
Assume that pens and pencils are substitutes. If the pencil manufacturers experience a decrease in the price of wood, which of the following will most likely occur?
The demand curve for pencils will shift to the left.
The supply curve for pens will shift to the right.
The demand curve for pens will shift to the left.
The supply curve for pencils will shift to the left.
Two tropical nations, Costa Luna and St. Pierre, hire tour boat operators in a perfectly competitive labor market. If the demand for tour boat operators in Costa Luna falls, wages in Costa Luna are likely to:
rise, and the supply of workers in St. Pierre would decrease.
fall, and the supply of workers in St. Pierre would increase.
In which of the following market structures do firms face low barriers to entry?
Select all answers that apply.
monopoly
monopolistic competition
oligopoly
perfect competition
In a free market, as price increases the quantity supplied will __________ while the quantity demanded will __________.
increase; decrease
remain the same; increase
decrease; remain the same
decrease; increase
Which of the following would cause a leftward shift of the supply curve as shown?
a decrease in the price of an input needed to produce the final product
a decrease in consumer wages
an increase in subsidies for the production firm
an increase in the price of an input needed to produce the final product
Susie and Sally open a lemonade stand in their neighborhood and within the first day, they sell out of lemonade in just a few hours. The next day, Susie and Sally again sell out of lemonade in a few hours. Because they can only carry so many supplies to their stand, they decide to raise the price of their lemonade. Susie and Sally's choice best demonstrates which of the following?
Supply and demand
An early winter frost destroys a large portion of the American tomato crop, drastically reducing supply, resulting in an _______ in price and a __________ in quantity demanded.
increase, decrease
Assume that bicycles and skateboards are substitutes. If the skateboard manufacturers experience a decrease in the price of wheels, which of the following will most likely occur? What is the curve?
The demand curve for bicycles will shift to the left.
In what market do businesses sell goods and services to households?
Product Market
Factor Market
Resource Market
In a free market economy who owns the resources?
state governments
the federal government
households
local governments
In the circular flow diagram firms pay wages for which factor of production?
Land
Labor
Entrepreneurship
Raw materials
This is a hybrid, with some elements of a corporation and some elements of a sole
proprietorship/partnership.
Limited Liability Company
Limitied Liability Partnership
General Partnership
S Corporation
They may have no more than 100 shareholders.
Sole Proprietorship
General Partnership
C Corporation
S Corporation
There is just one owner
Limited Liability Partnership
Sole Proprietorship
Limited Liability Corporation
Franchise
Hint: think of the soda market
Explain how an increase in the number of buyers can impact the demand curve.
An increase in the number of buyers can cause the demand curve to become horizontal.
An increase in the number of buyers can make the demand curve steeper.
An increase in the number of buyers can shift the demand curve to the right.
An increase in the number of buyers can shift the demand curve downwards.
How does a decrease in the number of buyers affect the demand curve?
The demand curve will become steeper.
The demand curve will shift to the right.
The demand curve will disappear.
The demand curve will shift to the left.
If the price of a substitute good decreases, what happens to the demand for a product?
Demand for the product becomes elastic.
Demand for the product increases.
Demand for the product decreases.
Demand for the product remains the same.
Discuss how a decrease in the number of buyers can impact the demand curve.
A decrease in the number of buyers can shift the demand curve to the left, resulting in lower demand for the product or service.
An increase in the number of buyers can shift the demand curve to the left
A decrease in the number of buyers can shift the demand curve to the right
A decrease in the number of buyers has no impact on the demand curve
