AP Econ Supply and Demand Quiz
which of the following is true when graphing demand i price is on vertical axis ii demand curve has a negative slope iii all other variables except price are held constant
i ii iii
if producers expect prices to fall in the future supply will ----
increase
an increase in the demand for steak will lead to a ---- in the supply of a ----
increase complement in production
better tech makes workers more efficient causing a ---- in ---- for computers
increase supply
lower wages would --- ---
increase supply
if the price of a substitute rises what happens to the demand for a good?
increases
if the supply of milk increases the supply of cream ----
increases
in terms of demand when prices are expected to rise in the future demand --- today
increases
when supply decreases price --- and quantity ---
increases decreases
when demand increases price --- and quantity ----
increases increases
if the average household income rises and we observe that the demand for off brand soda decreases, the off brand soda must be
inferior good
a decrease means a shift to the --- and an increase means a shift to the ----
left right
the downward sloping demand curve can be explained by i diminishing marginal utility ii diminishing marginal returns iii the income effect
i and iii
sin tax is placed on sales of alcohol leading to a ---- in ----
decrease supply
some car makers decide to leave the industry to produce other goods causing a --- in ---- for cars which in turn --- price and ---- quantity
decrease supply increase decraese
if the price of trucks increases then the supply of suvs ----
decreases
if taste for sneakers declines price ----- and quantity ----
decreases decreases
when demand decreases price --- and quantity ----
decreases decreases
when supply increases price --- and quantity -----
decreases increases
T or F if the cost of making books falls, the price goes down, causing demand to shift to the right
F
a banana-killing virus causes reduced production of bananas this a ----- in -----
decrease supply
what are the factors that shift demand?
Tastes Related goods Income Buyers Expectations
the supply curve is upward sloping because
as price increases suppliers earn more profit
ketchup and french fries are used together. this means that they are
complements in consumption
if producers expect prices to be higher in the future supply will ---
decrease
when college students leave for the summer, the demand for meals at local restaurants declines, this leads to a --- in price and a ---- in quantity
decrease decrease
a decrease in consumer income would lead to a ---- in ---- for textbooks
decrease demand
the price of ketchup increases causing a ---- in ---- for french fries
decrease demand
in terms of demand an increase in the price of apples decreases the -----
quantity demanded
an increase in the price of melons will cause ----- to increase
quantity supplied
an upward sloping supply curve shows
quantity supplied is positively related to price
when price increases ----- will increase and ---- will decrease
quantity supplied quantity demanded