Econ Unit 1 Practice Test

The government limits the number of foreign automobiles that can be imported into America. Draw a graph for total cars in America.

Car supply shifts left (government influence)

What effect would a decrease in price of processor chips have on the price and quantity of computers?

Computer Supply shifts right, price decreases (cost of production)

Marianne is grocery shopping for cheese and notices that there is a sale on Swiss cheese. (Cheddar cheese)

Demand curve shifts left (substitution)

In 2006, Facebook opened its interface to anyone over 13, instead of just college students.

Demand curve shifts right (Market size)

Nike introduces a new line of star Russell Wilson apparel. What happens to the market for Nike apparel?

Demand curve shifts right (advertising)

There is a sale on peanut butter at the local grocery store. (Jelly)

Demand curve shifts right (complementary)

Meredith's parents increase her allowance, so she spends more money on candy every week.

Demand for candy shifts right (income)

A new type of luxury Tesla becomes popular with millionaires. Draw a graph for Mercedes Benz.

Demand shifts left (trends)

There is a baby boom in California. Draw a graph for Gerber's baby food.

Demand shifts right (market size)

There is a very large increase in the price of gas. What will happen to the demand for fuel-efficient cars?

Fuel-efficient cars demand shifts right (substitution)

Seventeen new Poke restaurants open in Pleasanton. Draw a graph for Poke.

Supply shifts right (number of suppliers)

Taylor Swift is spotted wearing a red scrunchy in her hair. (scrunchie market)

demand curve shifts right (trends)

The price of avocados increases. What happens to the market for avocados?

quantity demanded goes down (price, move along the curve)