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U3L3b HW Econ

Total questions: 28

Worksheet time: 7hrs 0mins

Name
Class
Date
1.

Drawing supply and demand curves on a graph involves:

a)

Labeling the axes and plotting both supply and demand curves.

b)

Drawing only the supply curve.

c)

Drawing only the demand curve.

d)

Labeling the axes without drawing any curves.

2.

Before the change: Label original equilibrium price and quantity.

a)

Label the point where the supply and demand curves intersect as the original equilibrium price and quantity.

b)

Label the highest point on the supply curve as the original equilibrium price and quantity.

c)

Label the lowest point on the demand curve as the original equilibrium price and quantity.

d)

Label any random point on the graph as the original equilibrium price and quantity.

3.

Label the new equilibrium price and quantity after the change.

a)

At the intersection of the new supply and demand curves

b)

At the original equilibrium point

c)

At the highest price on the graph

d)

At the lowest quantity on the graph

4.

What happens to the supply and demand of hamburgers?

a)

Supply increases, leading to a lower equilibrium price and higher equilibrium quantity.

b)

Supply decreases, leading to a higher equilibrium price and lower equilibrium quantity.

c)

Demand increases, leading to a higher equilibrium price and higher equilibrium quantity.

d)

Demand decreases, leading to a lower equilibrium price and lower equilibrium quantity.

5.

Scenario 2: Price of chicken sandwiches (a substitute) increases. What happens to the supply and demand of hamburgers?

a)

Demand for hamburgers increases, leading to a higher equilibrium price and quantity.

b)

Supply of hamburgers decreases, leading to a lower equilibrium price and quantity.

c)

Demand for hamburgers decreases, leading to a lower equilibrium price and quantity.

d)

Supply of hamburgers increases, leading to a higher equilibrium price and quantity.

6.

A decrease in the price of hamburgers leads to which of the following changes in supply and demand?

a)

An increase in quantity demanded and a decrease in quantity supplied

b)

A decrease in quantity demanded and an increase in quantity supplied

c)

A shift of the demand curve to the right

d)

A shift of the supply curve to the right

7.

If the price for ground beef triples, what happens to the supply and demand of hamburgers?

a)

Supply of hamburgers increases, leading to a lower equilibrium price.

b)

Supply of hamburgers decreases, leading to a higher equilibrium price and lower equilibrium quantity.

c)

Demand for hamburgers increases, leading to a higher equilibrium quantity.

d)

There is no effect on the supply or demand of hamburgers.

8.

The graph shows the effect of new grilling technology that cuts production time in half. What happens to the equilibrium price and quantity as a result of this technological improvement?

a)

Price increases, Quantity decreases

b)

Price decreases, Quantity increases

c)

Price and Quantity both increase

d)

Price and Quantity both decrease

9.

Given the scenario: 'Price of chicken sandwiches (a substitute) increases.' Refer to the supply and demand graph. What happens to the equilibrium price and quantity of the good shown in the graph?

a)

Price increases, Quantity increases

b)

Price decreases, Quantity decreases

c)

Price increases, Quantity decreases

d)

Price decreases, Quantity increases

10.

What is the market condition that results from this price decrease?

a)

Surplus

b)

Shortage

c)

Equilibrium

d)

No change

11.

Refer to the diagram showing the price of hamburgers falling from 3to3 to 1. When the price falls below equilibrium, what happens to the quantity demanded (Qd) and the quantity supplied (Qs)?

a)

A) Qd increases, Qs decreases

b)

B) Qd decreases, Qs increases

c)

C) Both Qd and Qs increase

d)

D) Both Qd and Qs decrease

12.

Refer to the diagram showing the price of hamburgers falling from 3to3 to 1. Fill in the blank: When the price falls below equilibrium, a _______ occurs in the market.

a)

shortage

b)

surplus

c)

equilibrium

d)

substitution

13.

When the price for ground beef triples, what happens to the supply curve?

a)

It shifts to the right

b)

It shifts to the left

c)

It does not shift

d)

It becomes vertical

14.

As a result of the supply curve shifting from S to S1, what happens to the equilibrium price and quantity?

a)

Price increases, quantity increases

b)

Price increases, quantity decreases

c)

Price decreases, quantity increases

d)

Price decreases, quantity decreases

15.

In the graph, the new equilibrium price after the supply curve shifts is labeled as _____

a)

P1e

b)

P2e

c)

P3e

d)

P0e

16.

E. coli found in multiple burger restaurants. Refer to the supply and demand graph shown. What happens to the equilibrium price and quantity of burgers after the news of E. coli contamination?

a)

Price increases, Quantity increases

b)

Price increases, Quantity decreases

c)

Price decreases, Quantity increases

d)

Price decreases, Quantity decreases

17.

The demand for rice in Japan is falling, but the price is increasing mainly because of:

a)

Increased consumption of rice

b)

High prices, tariffs, subsidies, and incentives

c)

Decrease in rice imports

d)

Improved rice production

18.

Which of the following best represents the equilibrium in the market for computer games?

a)

The point where the supply and demand curves intersect

b)

The highest point on the demand curve

c)

The lowest point on the supply curve

d)

The area between the supply and demand curves

19.

Use Economic Analysis to determine what happens to the price and quantity of computer games in each scenario. Scenario 1: It becomes known that an electronics store is going to have a sale on their computer games 3 months from now. What happens to the current demand for computer games and what is the demand shifter?

a)

Demand increases now; demand shifter: income.

b)

Demand decreases now; demand shifter: expectations of future prices.

c)

Supply increases now; supply shifter: technology.

d)

Supply decreases now; supply shifter: input prices.

20.

In Scenario 2, what should be drawn and labeled to show the equilibrium for the market of computer games?

a)

A bar chart showing sales over time

b)

A pie chart of market share

c)

A supply and demand graph with the equilibrium point labeled

d)

A line graph of worker wages

21.

Use Economic Analysis to determine what happens to the price and quantity of computer games in each scenario. Scenario 2: The workers who produce the computer games go on strike for over two months. What is the change in the market?

a)

Supply increases

b)

Supply decreases

c)

Demand increases

d)

Demand decreases

22.

Use Economic Analysis to determine what happens to the price and quantity of computer games in each scenario. Scenario 3: When the average price of movie tickets rises, it has an effect on the purchase of computer games. What should be drawn and labeled to show the equilibrium?

a)

A bar graph showing sales over time

b)

A pie chart of market share

c)

A supply and demand graph with the equilibrium point labeled

d)

A timeline of price changes

23.

When the average price of movie tickets rises, what happens to the demand for computer games?

a)

Demand increases; demand shifter: substitute goods

b)

Demand decreases; demand shifter: complementary goods

c)

Supply increases; supply shifter: technology

d)

Supply decreases; supply shifter: input prices

24.

Use Economic Analysis to determine what happens to the price and quantity of computer games in each scenario. Scenario 3: When the average price of movie tickets rises, it has an effect on the purchase of computer games. 3. After: Price _____ Quantity _____

a)

Price increases, Quantity increases

b)

Price decreases, Quantity decreases

c)

Price increases, Quantity decreases

d)

Price decreases, Quantity increases

25.

The demand for turkey around Thanksgiving:

a)

increases

b)

decreases

c)

stays the same

d)

disappears

26.

The supply of turkeys around Thanksgiving:

a)

remains the same as other times of the year.

b)

decreases significantly.

c)

may increase as producers prepare for higher demand, but it may not increase as much as demand.

d)

becomes unlimited.

27.

Based on your answers, what do you think will happen to the price of turkey at Thanksgiving?

a)

The price of turkey will likely increase at Thanksgiving due to higher demand.

b)

The price of turkey will likely decrease at Thanksgiving due to lower demand.

c)

The price of turkey will stay the same at Thanksgiving.

d)

The price of turkey will not be affected by Thanksgiving.

28.

Supply and demand operate in the story by showing how individual actions and decisions, without central coordination, lead to the creation of a loaf of bread. What is the result of these actions?

a)

A centrally planned outcome

b)

An organized outcome through emergent order

c)

A random and chaotic result

d)

No outcome at all