WorksheetsSupply and Demand (EPF 4)
Total questions: 53
Worksheet time: 27mins
If income decreases and consumers purchase more of a product, the product is considered to be a/an ___________
(a)With inelastic demand, consumers are relatively ______________ to changes in prices.
(a)With elastic demand, the percentage change in quantity is _____________ the percentage change in price.
(a)When quantity demanded is less than quantity supplied, price will _______________
(a)When quantity demanded is less than quantity supplied, price will fall causing quantity demanded to _________
(a)When quantity demanded is less than quantity supplied, price will fall causing quantity demanded to increase and quantity supplied to ___________.
(a)The relationship between price and quantity demanded typically is _______________.
(a)If trumpets are normal goods, what will happen to price of trumpets when income in the economy increases.
Price increases
Price decreases
Price remains the same
If trumpets are normal goods, explain what will happen to the quantity of trumpets when income in the economy increases.
Quantity increases
Quantity decreases
Quantity remains the same
Many new trumpet producers enter into the market. What will happen to the price of trumpets in the market?
Many new trumpet producers enter into the market. What will happen to the quantity of trumpets in the market?
If there are few substitutes for trumpets, would the elasticity of demand for trumpets be relatively elastic or relatively inelastic?
If quantity supplied increases 20% when price increases 10%, price elasticity of supply is
(a)Factors that determine elasticity of demand include which of the following?
availability of substitutes, luxury or necessity, share of budget
availability of substitutes, luxury or necessity, cost of inputs
availability of normal goods, luxury or necessity, share of budget
availability of substitutes, technology, share of budget
Factors that determine elasticity of supply include which of the following?
number of producers, excess capacity, substitutability of inputs
number of producers, excess capacity, availability of substitutes
share of budget, excess capacity, substitutability of inputs
number of producers, excess capacity, availability of substitutes
Conditions for demand are consumers (a)
Causes of changes in demand include which of the following?
taste and preference, income, and number of potential buyers
taste and preference, technology, and number of potential buyers
cost of inputs, income, and number of potential buyers
taste and preference, income, and number of sellers
An increase in demand is shown by (a)
A decrease in demand is shown by (a)
The quantity supplied of a product is the quantity that producers will bring to market at a given
(a)When moving up along an existing supply curve, all variables other than price are
(a)Illustrating the law of supply, a supply curve typically is
(a)Which of the following are non-price determinants of supply?
technology, cost of inputs, and number of sellers
taste and preference, cost of inputs, and number of sellers
technology, income, and number of sellers
technology, cost of inputs, and number of potential buyers
When input costs increase (a)
An increase in the number of sellers in a market will cause (a)
A shortage exists in a market when the price is (a) the equilibrium price.
When the supply and demand curves intersect quantity supplied (a) quantity demanded at the equilibrium price
A surplus exists in a market when the price is (a) the equilibrium price.
When a shortage occurs, as the price moves toward equilibrium what will happen to quantity demanded and quantity supplied?
When a surplus occurs in a market, as the price moves toward equilibrium what will happen to quantity demanded and quantity supplied?
Assume that product X is an inferior good. When income increases, what will happen to the demand for product X, and the price and quantity of product X?
With a newspaper headline suggesting additional health benefits from eating apples, based on the change in demand in the apple market, price and quantity will change in what ways?
When wages for bagel workers decrease, what will happen to the supply of bagels and the price and quantity in the bagel market?
When the number of producers decreases in the market for bagels, what will happen to the supply of bagels and the price and quantity in the bagel market?
Assume that the number of sellers in a market increase, what will happen to the supply curve for the product, and what will happen to the price and quantity in the market?
What happens in the market for apples when the cost of fertilizer for apple groves increases?
What happens in the market for shoes when the consumer income increases and shoes are a normal good?
When the price of tennis rackets increases, what happens in the market for tennis balls?
Many new trumpet producers enter into the market. What will happen to the supply curve of trumpets in the market?
If trumpets are normal goods, explain what will happen to the demand curve of trumpets when income in the economy increases.
When the price of hot dogs decreases, what happens in the market for the complementary good of hot dog buns?
In the market for cell phones, if the supply of cell phones increases what will happen to the price and quantity of cell phones?
Price floors create
(a)A price ceiling is a legislated price that is (a)
What is the relationship between quantity demanded and supplied at equilibrium?
If the cost of production of Hula Hoops increases the supply curve will (a)
If consumers expect the price of a product to be higher In the future, what will happen to the demand for the product today?
The relationship between price and quantity supplied is typically
(a)If the price of oranges, a substitute for apples, increases. what will happen to the demand for apples?
The amount of a good or service that consumers are willing and able to buy at various prices is (a)
Frost and drought in Brazil and civil unrest in Colombia are constraining coffee supply chains. Analysts expect demand for coffee to rebound in the US as tariffs-related household budget worries level out. But imagine instead that US consumers' tastes have changed, and they prefer to consume less caffeine. What can be predicted about the coffee market?
Coffee prices are uncertain, but consumption will definitely decrease.
Coffee prices will increase, and coffee consumption will definitely decrease.
Coffee prices will decrease, but coffee consumption is uncertain.
Coffee prices will definitely increase, but that is all we can know for certain.
Record high natural gas prices have prompted fertilizer producers to shut down, including shutting down carbon dioxide production, a necessary input for animal slaughter and bubbly beverages. Consumers in the UK have been warned that slaughterhouses have only 2 weeks worth of CO2 left. Which of the following can be known about the meat market in the UK for the next week if conditions hold?
Meat prices will rise.
Meat prices will fall.
The quantity of meat available will rise.
The quantity of meat available will fall.
All of the following are likely to increase the price of airline tickets EXCEPT
Zoom has replaced the need for many business trips.
The TSA has removed the need to remove your shoes during screenings, making riding planes more pleasant for everyone!
The U.S. is set to ease international travel restrictions.
FFA layoffs have stressed out air traffic controllers into quitting causing fewer flights to be permitted to land and take off from major airports.
