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Supply Equilibrium Price

Total questions: 28

Worksheet time: 14mins

Name
Class
Date
1.

Federal minimum wage laws change, causing Chipotle’s labor costs to rise. What will happen to the market for burritos?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

2.

Widespread prosperity allows people to buy more jelly beans. What will happen to the market for jelly beans?

a)

Supply shift left

b)

Supply shift right

c)

Demand shift left

d)

Demand shift right

3.

A panel of doctors announces that coffee may help cure migraine headaches. What will happen to the market for coffee?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

4.

The government places a tax on rubber. What will happen to the market for car tires?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

5.

A new taco shop opens in Marshall. What will happen to the supply of Tacos in Marshall?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

6.

The price of Snickers candy bars increases. What will happen to the market for Milky Ways?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

7.

The price for Coca Cola, a substitute for Pepsi, decreases. What will happen to the market for Pepsi?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

8.

The price of cream, a complementary good for coffee, decreases. What will happen to the market for coffee?

a)

Supply will shift left

b)

Supply will shift right

c)

Demand will shift left

d)

Demand will shift right

9.

The Law of Demand states that...

a)

As prices increase, quantity demanded decreases and vice versa

b)

As prices increase, quantity demanded increases

c)

As prices increase, quantity supplied increases

d)

As prices decrease, quantity supplied decreases

10.

The Law of Supply states that...

a)

As prices increase, quantity demanded decreases.

b)

As prices increase, quantity supplied decreases; as prices decrease, quantity supplied increases.

c)

As prices increase, quantity supplied increases; as prices decrease, quantity supplied decreases.

d)

As supply increases, demand decreases.

11.

Is this an elastic or inelastic demand curve?

a)

Inelastic

b)

Elastic

12.

Is this an elastic or inelastic demand curve?

a)

Inelastic

b)

Elastic

13.

When demand for a good is elastic, it is most likely to have...

a)

No complementary goods

b)

No substitutes

c)

Many subsitutes

d)

Many complementary goods

14.

A shift in the demand curve means that

a)

there is always an increase in prices.

b)

there is a change in quantity demanded at every price.

c)

there is always a decrease in both price and quantity demanded.

d)

there is always an increase in quantity demanded.

15.

Which of the following pairs best represent substitute goods?

a)

DVD's and DVD Players

b)

Diet Sunkist and Diet Crush

c)

Hot dogs and hot dog buns

d)

Fruit roll ups and diet Coke

16.

When the selling price of a good goes down, what happens to the quantity supplied?

a)

It increases.

b)

It does not change.

c)

It decreases.

d)

It increases the cost of production.

17.

After Eminem records his new hit “Econ Girl, You So Fine,” taking economics becomes the latest fad. What will happen to the market for econ books?

a)
b)
c)
d)
18.

Excessive hours of studying economics has been shown to cause cancer in lab rats. What will happen to the market for econ books?

a)
b)
c)
d)
19.

Due to forest fires out west, paper prices have skyrocketed. What will happen to the market for econ books?

a)
b)
c)
d)
20.

Teacher’s Curriculum Institute, the manufacturer of our economics book, decides to raise its prices. What will happen to the market for economics books?

a)
b)
c)
d)
21.

After repeated requests from Nicki Minaj, engineers develop a machine that can make fake hair three times faster than before. How will this change in technology affect the market for fake hair?

a)
b)
c)
d)
22.

In the graph provided, the equilibrium price and quantity

for milk in this market is:

a)

$1.50 and 28 million gallons

b)

$1.50 and 30 million gallons

c)

$2.00 and 20 million gallons

d)

$1.00 and 35 million gallons

23.

If the demand curve stays the same and the supply curve shifts right, what will happen to equilibrium price and quantity?

a)

E. price goes up, E. quantity goes down

b)

E. price goes down, E. quantity goes up

c)

E. price goes up, E. quantity goes up

d)

E. price goes down, E. quantity goes up

24.

If the demand curve stays the same and the supply curve shifts left, what will happen to equilibrium price and quantity?

a)

E. price goes up, E. quantity goes up

b)

E. price goes down, E. quantity goes up

c)

E. price goes up, E. quantity goes down

d)

E. price goes down, E. quantity goes down

25.

If the supply curve stays the same and the demand curve shifts right, what will happen to equilibrium price and quantity?

a)

E. price goes down, E. quantity goes up

b)

E. price goes down, E. Quantity goes down

c)

E. price goes up, E. quantity goes down

d)

E. price goes up, E. quantity goes up

26.

If the supply curve stays the same and the demand curve shifts left, what will happen to equilibrium price and quantity?

a)

E. price goes down, E. quantity goes down

b)

E. price goes down, E. quantity goes up

c)

E. price goes up, E. quantity goes down

d)

E. price goes up, E. quantity goes up

27.

A price ceiling usually results in a...

a)

surplus

b)

shortage

c)

equilibrium

d)

stock market

28.

A price floor usually results in a...

a)

surplus

b)

shortage

c)

rationing

d)

equilibrium