Supply and Demand

Which of the following would cause the supply curve to shift to the right? An increase in production costs. An increase in the price of the product. An improvement in technology.

An improvement in technology.

Which of the following would cause the supply curve to shift to the right? An increase in the price of the product. An increase in production costs. An improvement in technology.

An improvement in technology.

Which of the following will shift the supply curve to the left? A change in consumer tastes and preferences. An increase in the price of inputs to production. Government deregulation of production.

An increase in the price of inputs to production.

Information campaigns about tobacco hazards and taxes on tobacco are two ways to discourage its use. Which one decreases demand for smoking? The Information campaign on hazards of tobacco Both cause a decrease in demand The Tax on tobacco products that drives up its price

The Information campaign on hazards of tobacco

The downward slope of a demand curve illustrates the pattern that as ________ rises, ________ decreases. price : quantity demanded quantity supplied : quantity demanded price : quantity supplied

price : quantity demanded

The downward slope of a demand curve illustrates the pattern that as ________ rises, ________ decreases. quantity supplied : quantity demanded price : quantity demanded price : quantity supplied

price : quantity demanded

The downward slope of a demand curve illustrates the pattern that as _______ decreases, _______ increases. quantity supplied; quantity demanded price; quantity demanded price; quantity supplied

price; quantity demanded

A change in technology that reduces the costs of production will decrease consumer demand. shift the supply curve to the right. increase consumer demand.

shift the supply curve to the right.

When higher prices result in higher quantity supplied, economists call this relationship the law of supply. the supply curve. price and supply model.

the law of supply.

Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a rightward shift of both the supply and demand curves. the supply curve. the demand curve.

the supply curve.

A competitive market is one in which there is a large number of buyers and sellers. government makes most decisions about what will be produced. everyone owns the factors of production.

there is a large number of buyers and sellers.

When quantity demanded decreases in response to a change in price the demand curve shifts to the left. the demand curve shifts to the right. there is a movement from one point to another along the demand curve

there is a movement from one point to another along the demand curve

The supply curve will shift to the right if which of the following occurs? An improvement in technology. Unfavorable natural conditions. A new tax imposed on the product.

An improvement in technology.

According to the laws of demand, assuming other factors are held constant As the price of milk increase, the quantity of milk demanded will increase As the price of milk decrease, the quantity of milk demanded will increase As the demand for milk increase, the price of milk will also increase

As the price of milk decrease, the quantity of milk demanded will increase

According to the law of supply, assuming other factors are held constant as the price of milk increases, the quantity of milk supplied will decrease as the price of milk decreases, the quantity of milk supplied will decrease. as the supply for milk increases, the price of milk will also increase.

As the price of milk decreases, the quantity of milk supplied will decrease.

If demand decrease and supply remains constant, what happens to the market equilibrium? Quantity and price both rise Quantity and price both fall Quantity rises and price falls.

Quantity rises and price falls.

There are two common ways to discourage tobacco use; taxes on tobacco and information campaigns on the hazards of tobacco use. Which way causes a decrease in demand for smoking? Information campaign on hazards of tobacco. Tax on tobacco products that drives up its price. Both cause a decrease in demand.

Information campaign on hazards of tobacco.

If a decrease in the price of MP3 players decreases the demand for CD players, this means that MP3 players and CD players are inferior goods. MP3 players and CD players are substitutes. MP3 players and CD players are normal goods.

MP3 players and CD players are substitutes.

Which of the following events can shift the level of demand (demand is the relationship between price and quantity demanded)? Population grows in a particular market area. Supply increases or decreases. Price of the good changes.

Population grows in a particular market area.

A demand curve shows the graphical relationship between quantity demanded and quantity produced cost price

Price

If demand increases and supply remains constant, what happens to the market equilibrium?​ Quantity rises and price falls Quantity and price both rise Quantity and price both fall.

Quantity and price both rise

If demand increases and supply remains constant, what happens to the market equilibrium?​ Quantity and price both rise.​ Quantity and price both fall. Quantity rises and price falls.

Quantity and price both rise.​

If demand deceases and supply remains constant, what happens to the market equilibrium?​ Quantity and price both fall. Quantity and price both rise.​ Quantity rises and price falls.

Quantity rises and price falls.

The city of Portland aims to increase tourism. A recent study showing the high popularity of doughnuts causes the city to subsidize its doughnut shops. What happens in the market for doughnuts in Portland? The quantity supplied and the quantity demanded both rise. The equilibrium quantity falls. Doughnut prices fall.

The quantity supplied and the quantity demanded both rise. Doughnut prices fall.

When the actual price in some market is above the equilibrium price, the resulting market condition is known as excess demand price ceiling excess supply

excess supply

An decrease in the quantity supplied can be the result from increased demand. a decrease in price. a decrease in supply.

a decrease in price.

According to the law of demand, assuming other factors are held constant as the price of bread increases, the quantity of bread demanded will decrease as the price of bread increases, the quantity of bread demanded will increase. as the demand for bread increases, the price of bread will also increase.

as the price of bread increases, the quantity of bread demanded will decrease

Excess demand occurs when the actual price in some market is _______ the equilibrium price. above below equal to

below

When ________, business firms will collectively supply a higher quantity of output at any given price, and the supply curve will shift to the right. there is a population increase prices rise costs of production fall

costs of production fall

When ________, business firms will collectively supply a lower quantity of output at any given price, and the supply curve will shift to the left. prices decrease there is a population decrease costs of production increase

costs of production increase

Market economies are based on private enterprise, which means there is no private property. private companies control the government. economic decision-making happens through markets.

economic decision-making happens through markets.

In a market with an upward sloping supply curve and a downward sloping curve, when the actual price must be higher than the equilibrium price, there will be excess demand excess supply an increase in the price

excess supply

If supply falls and demand remains constant, once the market has adjusted to its new equilibrium there will be more transactions, and they will take place at a lower price. fewer transactions, and they will take place at a higher price. fewer transactions, and they will take place at a lower price.

fewer transactions, and they will take place at a higher price.

Decreased competition because of fewer producers in a market will cause higher prices due to an decrease in quantity supplied at every price. lower prices due to decreased supply. less demand in the market.

higher prices due to an decrease in quantity supplied at every price.

Excess supply will result in suppliers _______ prices, which encourages consumers to demand _______ . lowering; more lowering; less raising; less

lowering; more

From an initial equilibrium, suppose there's an increase in demand. Once the market reaches its new equilibrium, there will be more transactions, and they will take place at a lower price fewer transactions, and they will take at a higher price more transactions, and they will take at a higher price

more transactions, and they will take at a higher price

The relationship between the price in a market and the amount that producers collectively make available for sale, is referred to as equilibrium quantity. quantity supplied. supply.

supply.

When higher prices result in a lower quantity demanded, economists call this relationship price and demand model. the law of demand. the demand curve.

the law of demand.

In general, supply curves slope upward from left to right upward from right to left downward from left to right

upward from left to right

In general, supply curves slope upward from left to right. upward from right to left. downward from left to right.

upward from left to right.

In a planned economy, government determines the prices for goods and services, and what goods will be produced. firms determine what goods to produce to maximize profits. allows consumers to influence prices based on demand behavior.

what goods will be produced.