Supply and Demand Quiz

Refer to Figure 3-4. At a price of $10, how many units will be sold? 200 400 600 800

200

Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Picasso paintings and the market for designer jeans. Which graph most likely represents which market? Graph B represents both the market for original Picasso paintings and designer jeans. Graph A represents both the market for original Picasso paintings and designer jeans. Graph A represents the market for original Picasso paintings and Graph B represents the market for designer jeans. Graph B represents the market for original Picasso paintings and Graph A represents the market for designer jeans.

Graph B represents the market for original Picasso paintings and Graph A represents the market for designer jeans.

As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will rise True False

True

A successful marketing campaign will increase the demand for Red Bull. This will ________ the equilibrium price and ________ the equilibrium quantity of Red Bull. increase; increase decrease; decrease decrease; increase increase; decrease

increase; increase

During the recession of 2007-2009, despite falling income levels, McDonald's experienced increased sales. The increase in demand for Big Macs despite the decline in income indicates that Big Macs are considered normal goods. complementary goods. substitute goods. inferior goods.

inferior goods

A change in all of the following variables will change the market demand for a product except the price of the product. income. tastes. population and demographics.

the price of the product.